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The following transactions occurred during the month of June 2018 for the Stridewell Corporation. The company owns and operates a retail shoe store. 1. Issued 95,000 shares of common stock in exchange for $475,000 cash. 2. Purchased furniture and fixtures at a cost of $83,750. $33,500 was paid in cash and a note payable was signed for the balance owed. 3. Purchased inventory on account at a cost of $190,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $323,000. The cost of the goods sold was $161,500. 5. Paid $4,250 in rent on the store building for the month of June. 6. Paid $2.280 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2018 7. Paid $137,275 on account for the met purchased in 3 d $64,600 from customers on account 9. Paid shareholders a cash dividend of $4,750. 10. Recorded depreciation expense of $1,675 for the month on the furniture and foxtures. 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. if no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 12 Issued 95,000 shares of common stock irtexchange for $475,000 cash. 1 of 5 l Next >

Answer 1

1	Cash	475000
	Common stock		475000
2	Furniture and fixtures	83750
	Cash		33500
	Note payable		50250
3	Inventory	190000
	Accounts payable		190000
4a	Accounts receivable	323000
	Sales revenue		323000
b	Cost of goods sold	161500
	Inventory		161500
5	Rent expense	4250
	Cash		4250
6	Prepaid insurance	2280
	Cash		2280
7	Accounts payable	137275
	Cash		137275
8	Cash	64600
	Accounts receivable		64600
9	Retained earnings	4750
	Cash		4750
10	Depreciation expense	1675
	Accumulated depreciation		1675
11	Insurance expense	190		=2280/12
	Prepaid insurance		190