General ledger drop down options: No journal entry, accounts payable, accounts r

Question

General ledger drop down options:
No journal entry, accounts payable, accounts receivable, accumulated depreciation, advertising expense, allowance for uncollectible accounts, bad debt, buildings, cash, common stock, cost of good sold, deferred rent revenue, deferred sales revenue, deferred service revenue, depreciation expense, equipment, furniture and fixtures, gain on sale of investment, income summary, income tax expense, insurance expense, interest expense, interest payable, interest receivable, interest revenue, inventory, land, maintenance expense, miscellaneous expense, note payable, note receivable, prepaid advertising, prepaid insurance, prepaid rent, rent expense, rent revenue, retained earnings, salaries expense, salaries table, salaries revenue, service revenue, supplies, supplies expense, utilities expense, and utilities expense payable.

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 85,000 shares of common stock in exchange for $425,000 cash 2. Purchased furniture and fixtures at a cost of $76,250. $30,500 was paid in cash and a note payable was signed for the balance owed 3. Purchased inventory on account at a cost of $170,000. The company uses the perpetual inventory system 4. Credit sales for the month totaled $289,000. The cost of the goods sold was $144,500 5. Paid $3,750 in rent on the store building for the month of June. 6. Paid $2,040 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2018. 7. Paid $122,825 on account for the merchandise purchased in 3. 8. Collected $57,800 from customers on account. 9. Paid shareholders a cash dividend of $4,250. 10. Recorded depreciation expense of $1,525 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.) Journal entry worksheet 1 1.2-3- 5 6 7 8 12

Explanation / Answer

Journal Entries Date Particulars Journal Folio Debit Credit 1 Cash A/c Dr 425000 To Common Stock 425000 Common stock issued for cash. 2 Furniture and Fixtures A/c Dr. 76250 To Cash 30500 To Note Payable 45750 Furniture purchased partly on cash and part payment by Notes Payable. 3 Inventory A/c Dr. 170000 To Accounts Payable 170000 Inventory purchased on credit. 4 Accounts Receivable 289000 To Sales Revenue 289000 Credit sales revenue recorded. 5 Rent Expense A/c Dr 3750 To Cash 3750 Rent paid for June. 6 Insurance Expenses A/c Dr (8 Months) 1360 Prepaid Insurance A/c (4 months) 680 To Cash 2040 Insurance paid for 1 year. 7 Accounts Payable 122825 To Cash 122825 Paid part cash for inventory purchase. 8 Cash 57800 To Accounts Receivable 57800 Cash collected from customers. 9 Dividends Payable A/c Dr 4250 To Cash 4250 Dividends paid to shareholders. 10 Depreciation Expense A/c Dr 1525 To Furnitures and Fixtures 1525 Depreciation expense recorded. 11 No Journal entry required.

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