Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 2-4 Journal entries [LO2-2] The following transactions occurred during the month of June 2018 for the Stridewell Corporation. The company owns and operates a

image text in transcribed

Exercise 2-4 Journal entries [LO2-2] The following transactions occurred during the month of June 2018 for the Stridewell Corporation. The company owns and operates a retail shoe store 1. Issued 115,000 shares of common stock in exchange for $575,000 cash. 2. Purchased furniture and fixtures at a cost of $95,000. $38,000 was paid in cash and a note payable was signed for the balance owed 3. Purchased inventory on account at a cost of $230,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $391,000. The cost of the goods sold was $195,500 5. Paid $5,000 in rent on the store building for the month of June 6. Paid $2,640 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2018 7. Paid $166,175 on account for the merchandise purchased in 3 8. Collected $78,200 from customers on account. 9. Paid shareholders a cash dividend of $5,750 10. Recorded depreciation expense of $1,900 for the month on the furniture and fixtures 11. Recorded the amount of prepaid insurance that expired for the month. Required Prepare journal entries to record each of the transactions and events listed above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 01 Cash 575,000 Common stock 575,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ISO 27001 Controls A Guide To Implementing And Auditing

Authors: IT Governance

1st Edition

1787781445, 978-1787781443

More Books

Students also viewed these Accounting questions