The following transactions occurred during the month of June 2016 for the Stridewell Corporation. The company owns and operates a retail shoe store. 1. Issued 100,000 shares of common stock in exchange for $500,000 cash. 2. Purchased furniture and fixtures at a cost of $100,000. $40,000 was paid in cash and a note payable was signed for the balance owed. 3. Purchased inventory on account at a cost of $200,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $280,000. The cost of the goods sold was $140,000. 5. Paid $6,000 in rent on the store building for the month of June. 6. Paid $3,000 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2016. 7. Paid $120,000 on account for the merchandise purchased in 3. 8. Collected $55,000 from customers on account. 9. Paid shareholders a cash dividend of $5,000. 10. Recorded depreciation expense of $2,000 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.

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Asked Jan 14, 2020
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The following transactions occurred during the month of June 2016 for the Stridewell Corporation. The company owns and operates a retail shoe store. 1. Issued 100,000 shares of common stock in exchange for $500,000 cash. 2. Purchased furniture and fixtures at a cost of $100,000. $40,000 was paid in cash and a note payable was signed for the balance owed. 3. Purchased inventory on account at a cost of $200,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $280,000. The cost of the goods sold was $140,000. 5. Paid $6,000 in rent on the store building for the month of June. 6. Paid $3,000 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2016. 7. Paid $120,000 on account for the merchandise purchased in 3. 8. Collected $55,000 from customers on account. 9. Paid shareholders a cash dividend of $5,000. 10. Recorded depreciation expense of $2,000 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.

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