The following transactions occurred during the month of June 2024 for the Stridewell Corporation. The company owns and operates a retail shoe store.Issued 55,000 shares of common stock in exchange for $275,000 cash.Purchased office equipment at a cost of $53,750. Cash of $21,500 was paid and a note payable was signed for the balance owed.Purchased inventory on account at a cost of $110,000. The company uses the perpetual inventory system.Credit sales for the month totaled $187,000. The cost of the goods sold was $93,500.Paid $2,250 in rent on the store building for the month of June.Paid $1,320 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2024.Paid $79,475 on account for the inventory purchased in transaction 3.Collected $37,400 from customers on account.Paid shareholders a cash dividend of $2,750.Received cash of $1,075 from customers in advance of services to be provided.Required:Prepare journal entries to record each of the transactions and events listed above.

1. Insurance Premium for 1 year = $ 1,320 Premium for 1 month $ 1,320/ 12 =$ 110 Insurance Premium for June month will be debited to insurance expense account and balance is prepaid insurance. Prepaid insurance=$ 1,320 - $110 =$1210

Answered: Prepare journal entries to record each…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Prepare journal entries to record each of the transactions and events listed above.

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