Exercise 2-4 (Algo) Journal entries [LO2-3] The following transactions occurred during the month of June 2021 for the Stridewell Corporation. The company owns and operates a retail shoe store. Issued 90,000 shares of common stock in exchange for $450,000 cash. Purchased office equipment at a cost of $80,000. $32,000 was paid in cash and a note payable was signed for the balance owed. Purchased inventory on account at a cost of $180,000. The company uses the perpetual inventory system. Credit sales for the month totaled $306,000. The cost of the goods sold was $153,000. Paid $4,000 in rent on the store building for the month of June. Paid $2,160 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2021. Paid $130,050 on account for the merchandise purchased in 3. Collected $61,200 from customers on account. Paid shareholders a cash dividend of $4,500. Recorded depreciation expense of $1,600 for the month on the office equipment. Recorded the amount of prepaid insurance that expired for the month.

S/n   General Journal         Debit            Credit

1.       Cash                        $450,000  

              Common Stock                       $450,000

         (Issued Common stock $5 par value)

2.     Furniture and Fixture $80,000  

               Cash                                        $32,000

               Note Payable                          $48,000

3.      Inventory                    $180,000  

                Accounts Payable                  $180,000

4.     Accounts receivable   $306,000

                Sales                                       $306,000

       Cost of goods sold      $153,000  

                 Inventory                                $153,000

5.     Rent Expense               $4,000  

                 Cash                                        $4,000

6.    Prepaid Expense           $2,160  

                 Cash                                          $2,160

7.    Accounts payable         $13,050  

                 Cash                                          $13,050

8.    Cash                                $61,200  

                Accounts Receivables              $61,200

9.    Dividend                        $4,500  

                Cash                                            $4,500

10.  Depreciation Expenses$1,600

             Acc. Dep. Furniture & fixtures       $1,600

11.   Insurance Expense         $180 (2,160/12)

            Prepaid Expense                            $180

support your answer using the data presented. (5 points). 4. based on the information you used to schedule and curve, which product would you recommend the shoe hut focus on, and why? provide details that support your answer. (5 points).