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 95,000 shares of common stock in exchange for $475,000 cash.
2.
Purchased furniture and fixtures 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. The cost of the goods sold was $161,500.
5. Paid $4,250 in rent on the store building for the month of June.
6.
Paid $2,280 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2016.
7. Paid $137,275 on account for the merchandise purchased in 3.
8. Collected $64,600 from customers on account.
9. Paid shareholders a cash dividend of $4,750.
10. Recorded depreciation expense of $1,675 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
