Question: The following transactions occurred during the month of June 201

The following transactions occurred during the month of June 2011 for the Stridewell Corporation. The company owns and operates a retail shoe store.
1. Issued 100,000 shares of common stock in exchange for $500,000 cash.
2. Purchased furniture and fixtures at a cost of $100,000. $40,000 was paid in cash and a note payable was signed for the balance owed.
3. Purchased inventory on account at a cost of $200,000. The company uses the perpetual inventory system.
4. Credit sales for the month totaled $280,000. The cost of the goods sold was $140,000.
5. Paid $6,000 in rent on the store building for the month of June.
6. Paid $3,000 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2011.
7. Paid $120,000 on account for the merchandise purchased in 3.
8. Collected $55,000 from customers on account.
9. Paid shareholders a cash dividend of $5,000.
10. Recorded depreciation expense of $2,000 for the month on the furniture and fixtures.
11. Recorded the amount of prepaid insurance that expired for the month.

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

View Solution:

Sale on SolutionInn
  • CreatedJune 24, 2013
  • Files Included
Post your question