Reference no: EM13585530

The following transactions occurred during the month of June 2013 for the Stridewell Corporation. The company owns and operates a retail shoe store.

a. Issued 100,000 shares of common stock in exchange for $500,000 cash.

b.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.

c.Purchased inventory on account at a cost of $200,000. The company uses the perpetual inventory system.

d. Credit sales for the month totaled $280,000. The cost of the goods sold was $140,000.
e. Paid $6,000 in rent on the store building for the month of June.

f.Paid $3,000 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2013.

g. Paid $120,000 on account for the merchandise purchased in transaction c.

h. Collected $55,000 from customers on account.

i. Paid shareholders a cash dividend of $5,000.

j. Recorded depreciation expense of $2,000 for the month on the furniture and fixtures.

k. Recorded the amount of prepaid insurance that expired for the month.

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