The following transactions occurred during the month of June 2016 for the Stride

Question

The following transactions occurred during the month of June 2016 for the Stridewell Corporation. The company owns and operates a retail shoe store.

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.

Purchased inventory on account at a cost of $200,000. The company uses the perpetual inventory system.

Paid $3,000 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2016.

The following transactions occurred during the month of June 2016 for the Stridewell Corporation. The company owns and operates a retail shoe store.

Explanation / Answer

Journal Entries :-

S.No. Particulars Debit($) Credit($) 1. Cash A/c Dr. 500000 To Common Stock A/c 500000 2. Furniture and Fixture A/c Dr. 100000 To Cash A/c 40000 To Notes Payable A/c 60000 3. Inventory A/c Dr. 200000 To Accounts Payable A/c 200000 4. Accounts Receivable A/c Dr. 280000 Cost of Goods Sold A/c Dr. 140000 To Sales A/c 280000 To Inventory A/c 140000 5. Rent Expenses A/c Dr. 6000 To Cash A/c 6000 6. Pre-Paid Insurece A/c Dr. 3000 To Cash A/c 3000 7 Accounts Payable A/c Dr. 120000 To Cash A/c 120000 8. Cash A/c Dr. 55000 To Accounts Receivable A/c 55000 9. Dividend A/c Dr. 5000 To Cash A/c 5000 10. Depreciation A/c Dr. 2000 To Furniture & Fixtures A/c 2000 11. Insurance Expenses A/c Dr. ($3000/12) 250 To Pre-Paid Insurance A/c 250

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