Question
The following transactions occurred during the month of June 2021 for the Stridewell Corporation. The company owns and operates a retail shoe store. Issued 95,000
The following transactions occurred during the month of June 2021 for the Stridewell Corporation. The company owns and operates a retail shoe store.
- Issued 95,000 shares of common stock in exchange for $475,000 cash.
- Purchased office equipment at a cost of $83,750. $33,500 was paid in cash and a note payable was signed for the balance owed.
- Purchased inventory on account at a cost of $190,000. The company uses the perpetual inventory system.
- Credit sales for the month totaled $323,000. The cost of the goods sold was $161,500.
- Paid $4,250 in rent on the store building for the month of June.
- Paid $2,280 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2021.
- Paid $137,275 on account for the merchandise purchased in 3.
- Collected $64,600 from customers on account.
- Paid shareholders a cash dividend of $4,750.
- Recorded depreciation expense of $1,675 for the month on the office equipment.
- Recorded the amount of prepaid insurance that expired for the month.
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.)
-
1
Issued 95,000 shares of common stock in exchange for $475,000 cash.
-
2
Purchased office equipment at a cost of $83,750. $33,500 was paid in cash and a note payable was signed for the balance owed.
-
3
Purchased inventory on account at a cost of $190,000. The company uses the perpetual inventory system.
-
4
Credit sales for the month totaled $323,000.
-
5
The cost of the goods was $161,500.
-
6
Paid $4,250 in rent on the store building for the month of June.
-
7
Paid $2,280 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2021.
-
8
Paid $137,275 on account for the merchandise purchased in 3.
-
9
Collected $64,600 from customers on account.
-
10
Paid shareholders a cash dividend of $4,750.
-
11
Recorded depreciation expense of $1,675 for the month on the office equipment.
-
12
Recorded the amount of prepaid insurance that expired for the month.
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