The following transactions occurred during the month of June 2018 for the Stridewell Corporation. The company...

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The following transactions occurred during the month of June2018 for the Stridewell Corporation. The company owns and operatesa retail shoe store. Issued 145,000 shares of common stock inexchange for $725,000 cash. Purchased furniture and fixtures at acost of $117,500. $47,000 was paid in cash and a note payable wassigned for the balance owed. Purchased inventory on account at acost of $290,000. The company uses the perpetual inventory system.Credit sales for the month totaled $493,000. The cost of the goodssold was $246,500. Paid $6,750 in rent on the store building forthe month of June. Paid $3,480 to an insurance company for fire andliability insurance for a one-year period beginning June 1, 2018.Paid $209,525 on account for the merchandise purchased in 3.Collected $98,600 from customers on account. Paid shareholders acash dividend of $7,250. Recorded depreciation expense of $2,350for the month on the furniture and fixtures. Recorded the amount ofprepaid insurance that expired for the month. Required: Preparejournal entries to record each of the transactions and eventslisted above. (If no entry is required for a transaction/event,select "No journal entry required" in the first account field.)

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Date Account Titles and Explanation Debit Credit Cash ac 725000 Common Stock ac 725000 To record issue of common stock for cash Furniture and fixtures ac 117500 Cash ac 47000 Notes Payables 117500 47000 70500 To record purchase of furniture and fixtures Inventory See Answer

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Transcribed Image Text

The following transactions occurred during the month of June2018 for the Stridewell Corporation. The company owns and operatesa retail shoe store. Issued 145,000 shares of common stock inexchange for $725,000 cash. Purchased furniture and fixtures at acost of $117,500. $47,000 was paid in cash and a note payable wassigned for the balance owed. Purchased inventory on account at acost of $290,000. The company uses the perpetual inventory system.Credit sales for the month totaled $493,000. The cost of the goodssold was $246,500. Paid $6,750 in rent on the store building forthe month of June. Paid $3,480 to an insurance company for fire andliability insurance for a one-year period beginning June 1, 2018.Paid $209,525 on account for the merchandise purchased in 3.Collected $98,600 from customers on account. Paid shareholders acash dividend of $7,250. Recorded depreciation expense of $2,350for the month on the furniture and fixtures. Recorded the amount ofprepaid insurance that expired for the month. Required: Preparejournal entries to record each of the transactions and eventslisted above. (If no entry is required for a transaction/event,select "No journal entry required" in the first account field.)