Prepare journal entries to record each of the transactions and events listed above.
Prepare journal entries to record each of the transactions and events listed above.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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
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