The following transactions occurred during the month of June 2021 for the Stridewell Corporation. The company owns and operates a retail shoe store. 1. Issued 50,000 shares of common stock in exchange for $250,000 cash.
2. Purchased office equipment at a cost of $50,000. $20,000 was paid in cash and a note payable was signed for the balance owed.
3. Purchased inventory on account at a cost of $100,000. The company uses the perpetual inventory system.
4. Credit sales for the month totaled $170,000. The cost of the goods sold was $85,000.
5. Paid $2,000 in rent on the store building for the month of June.
6. Paid $1,200 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2021.
7. Paid $72,250 on account for the merchandise purchased in 3.
8. Collected $34,000 from customers on account.
9. Paid shareholders a cash dividend of $2,500.
10. Recorded depreciation expense of $1,000 for the month on the office equipment.
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.