The following transactions occurred during the month of June 2024 for the Stridewell Corporation. The company owns and operates a retail shoe store. 1. Issued 120,000 shares of common stock in exchange for $600,000 cash. 2. Purchased office equipment at a cost of $98,750. Cash of $39,500 was paid and a note payable was signed for the balance owed. 3. Purchased inventory on account at a cost of $240,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $408,000. The cost of the goods sold was $204,000. 5. Paid $5,250 in rent on the store building for the month of June. 6. Paid $2,760 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2024. 7. Paid $173,400 on account for the inventory purchased in transaction 3. 8. Collected $81,600 from customers on account. 9. Paid shareholders a cash dividend of $6,000. 10. Received cash of $1,975 from customers in advance of services to be provided. Required: Prepare journal entries to record each of the transactions and events listed above. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
The following transactions occurred during the month of June 2024 for the Stridewell Corporation. The company owns and operates a retail shoe store. 1. Issued 120,000 shares of common stock in exchange for $600,000 cash. 2. Purchased office equipment at a cost of $98,750. Cash of $39,500 was paid and a note payable was signed for the balance owed. 3. Purchased inventory on account at a cost of $240,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $408,000. The cost of the goods sold was $204,000. 5. Paid $5,250 in rent on the store building for the month of June. 6. Paid $2,760 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2024. 7. Paid $173,400 on account for the inventory purchased in transaction 3. 8. Collected $81,600 from customers on account. 9. Paid shareholders a cash dividend of $6,000. 10. Received cash of $1,975 from customers in advance of services to be provided. Required: Prepare journal entries to record each of the transactions and events listed above. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
H-8
Transcribed Image Text:The following transactions occurred during the month of June 2024 for the Stridewell Corporation. The company owns and operates a
retail shoe store.
1. Issued 120,000 shares of common stock in exchange for $600,000 cash.
2. Purchased office equipment at a cost of $98,750. Cash of $39,500 was paid and a note payable was signed for the balance owed.
3. Purchased inventory on account at a cost of $240,000. The company uses the perpetual inventory system.
4. Credit sales for the month totaled $408,000. The cost of the goods sold was $204,000.
5. Paid $5,250 in rent on the store building for the month of June.
6. Paid $2,760 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2024.
7. Paid $173,400 on account for the inventory purchased in transaction 3.
8. Collected $81,600 from customers on account.
9. Paid shareholders a cash dividend of $6,000.
10. Received cash of $1,975 from customers in advance of services to be provided.
Required:
Prepare journal entries to record each of the transactions and events listed above.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education