Reference no: EM132984624

The following transactions occurred during the month of June 2021 for the Stridewell Corporation. The company owns and operates a retail shoe store.

• Issued 90,000 shares of common stock in exchange for $450,000 cash.
• Purchased office equipment at a cost of $80,000. $32,000 was paid in cash and a note payable was signed for the balance owed.
• Purchased inventory on account at a cost of $180,000. The company uses the perpetual inventory system.
• Credit sales for the month totaled $306,000. The cost of the goods sold was $153,000.
• Paid $4,000 in rent on the store building for the month of June.
• Paid $2,160 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2021.
• Paid $130,050 on account for the merchandise purchased in 3.
• Collected $61,200 from customers on account.
• Paid shareholders a cash dividend of $4,500.
• Recorded depreciation expense of $1,600 for the month on the office equipment.
• Recorded the amount of prepaid insurance that expired for the month.

Required:

Problem 1: Prepare journal entries to record each of the transactions and events listed above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)