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.

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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