Exercise 2-4 (Algo) Journal entries [LO2-3]

The following transactions occurred during the month of June 2024 for the Stridewell Corporation. The company owes and operates a retail shoe store.

1. Issued 140,000 shares of common stock in exchange for $700,000 cash.

2. Purchased office equipment at a cost of $113,750. Cash of $45,500 was paid and a note payable was signed for the balanced owed.

3. Purchased inventory on account at a cost of $280,000. The company uses the perpetual inventory system.

4. Credit sales for the month totaled $476,000. The cost of goods sold was $238,000.

5. Paid $6,500 in rent on the store building for the month of June.

6. Paid $3,360 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2024.

7. Paid $202,300 on account for the inventory purchased in transaction 3.

8. Collected $95,200 form customers on account.

9. Paid shareholders a cash dividend of $7,000.

10. Received cash of $2,275 from customers in advance of services to be provided.

Required: Prepare journal entries to record each of the transaction and events listed above.

Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.