The following transactions occurred during the month of June 2021 for the Stridewell Corporation. The company owns and operates a retail shoe store.
a. Issued 110,000 shares of common stock in exchange for $550,000 cash.
b. Purchased office equipment at a cost of $91,250. $36,500 was paid in cash and a note payable was signed for the balance owed.
c. Purchased inventory on account at a cost of $220,000. The company uses the perpetual inventory system.
d. Credit sales for the month totaled $374,000. The cost of the goods sold was $187,000. Paid $4,750 in rent on the store building for the month of June.
e. Paid $2,520 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2021.
f. Paid $158,950 on account for the merchandise purchased in c.
g. Collected $74,800 from customers on account.
h. Paid shareholders a cash dividend of $5,500.
i. Recorded depreciation expense of $1,825 for the month on the office equipment.
j. 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.
