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 130,000 shares of common stock in exchange for $650,000 cash.
2. Purchased office equipment at a cost of $106,250. $42,500 was paid in cash and a note payable was signed for the balance owed.
3. Purchased inventory on account at a cost of $260,000. The company uses the perpetual inventory system.
4. Credit sales for the month totaled $442,000. The cost of the goods sold was $221,000.
5. Paid $5,750 in rent on the store building for the month of June.
6. Paid $3,120 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2021.
7. Paid $187,850 on account for the merchandise purchased in 3.
8. Collected $88,400 from customers on account.
9. Paid shareholders a cash dividend of $6,500.
10. Recorded depreciation expense of $2,125 for the month on the office equipment.
11. Recorded the amount of prepaid insurance that expired for the month.
Required:
1. 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.)