Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please answer the red ones The following transactions occurred during the month of June 2021 for the Stridewell Corporation. The company owns and operates a
please answer the red ones
The following transactions occurred during the month of June 2021 for the Stridewell Corporation. The company owns and operates a retail shoe store. 1. Issued 85,000 shares of common stock in exchange for $425,000 cash. 2. Purchased office equipment at a cost of $76,250 $30,500 was paid in cash and a note payable was signed for the balance owed, 3. Purchased inventory on account at a cost of $170,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $289,000. The cost of the goods sold was $144,500. 5. Paid $3,750 in rent on the store building for the month of June. 6. Paid $2,040 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2021. 7. Paid $122.825 on account for the merchandise purchased in 3 8. Collected $57,800 from customers on account. 9. Pald shareholders a cash dividend of $4,250. 10. Recorded depreciation expense of $1,525 for the month on the office equipment. 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 Journal entry worksheet 2 3 4 5 Issued 85,000 shares of common stock in exchange for $425,000 cash. Note: Enter debits before credits Transaction General Journal Debit Credit No General Journal Credit Transaction 01 Debit 425,000 Cash Common stock 425,000 Office equipment 76,250 Cash Notes payable 30,500 45,750 170,000 Inventory Accounts payable 170,000 Oo oo 4a 289,000 Accounts receivable Sales revenue 289,000 Rent expense Cash 3,750 3.750 X 6 Insurance expense Prepaid insurance Cash 1,360 680 % 2,040 Accounts payable 122825 Cash 122,825 Cash Accounts receivable 57.800 57,800 08 Dividends Cash 4.250 4,250 09 Depreciation expense Office equipment 1,525 1.525 % 170,000 Inventory Accounts payable 170,000 la 289,000 Accounts receivable Sales revenue 289,000 5 4b 3.750 Rent expense Cash 3,750 6 05 Insurance expense Prepaid insurance Cash 1,360 680 2,040 122,825 Accounts payable Cash 122 805 07 57.800 Cash Accounts receivable 57 800 4.250 Dividends Cash 4.250 Depreciation expense Office equipment No journal entry required No journal entry required Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started