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.