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Intermediate accounting Ch.2


The following transactions occurred during the month of June 2016 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, 2016.
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.

Required:
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.)




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