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 65,000 shares of common stock in exchange for $325,000 cash.
2. Purchased office equipment at a cost of $61,250. $24,500 was paid in cash and a note payable was signed for the balance owed.
3. Purchased inventory on account at a cost of $130,000. The company uses the perpetual inventory system.
4. Credit sales for the month totaled $221,000. The cost of the goods sold was $110,500.
5. Paid $2,750 in rent on the store building for the month of June.
6. Paid $1,560 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2021.
7. Paid $93,925 on account for the merchandise purchased in 3.
8. Collected $44,200 from customers on account.
9. Paid shareholders a cash dividend of $3,250.
10. Recorded depreciation expense of $1,225 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.