The following transactions occurred during the month of june 2013 for the stridewell corporation. the company owns and operates a retail shoe store.
a. issued 100,000 shares of common stock in exchange for $500,000 cash.
b.
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.
c.
purchased inventory on account at a cost of $200,000. the company uses the perpetual inventory system.
d. credit sales for the month totaled $280,000. the cost of the goods sold was $140,000.
e. paid $6,000 in rent on the store building for the month of june.
f.
paid $3,000 to an insurance company for fire and liability insurance for a one-year period beginning june 1, 2013.
g. paid $120,000 on account for the merchandise purchased in transaction c.
h. collected $55,000 from customers on account.
i. paid shareholders a cash dividend of $5,000.
j. recorded depreciation expense of $2,000 for the month on the furniture and fixtures.
k. 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 particular transaction, select "no journal entry required" in the first account field.)

Selected information about income statement accounts for the reed company is presented below (the company's fiscal year ends on december 31): 2018 2017sales $ 4,400,000 $ 3,500,000cost of goods sold 2,860,000 2,000,000administrative expenses 800,000 675,000selling expenses 360,000 312,000interest revenue 150,000 140,000interest expense 200,000 200,000loss on sale of assets of discontinued component 50,000 —on july 1, 2018, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by gaap. the assets of the component were sold on september 30, 2018, for $50,000 less than their book value. results of operations for the component (included in the above account balances) were as follows: 1/1/18-9/30/18 2017 sales $ 400,000 $ 500,000 cost of goods sold (290,000 ) (320,000 )administrative expenses (50,000 ) (40,000 )selling expenses (20,000 ) (30,000 )operating income before taxes $ 40,000 $ 110,000 in addition to the account balances above, several events occurred during 2018 that have not yet been reflected in the above accounts: a fire caused $50,000 in uninsured damages to the main office building. the fire was considered to be an infrequent but not unusual event. inventory that had cost $40,000 had become obsolete because a competitor introduced a better product. the inventory was sold as scrap for $5,000.income taxes have not yet been recorded. required: prepare a multiple-step income statement for the reed company for 2018, showing 2017 information in comparative format, including income taxes computed at 40% and eps disclosures assuming 300,000 shares of common stock. (amounts to be deducted should be indicated with a minus sign. round eps answers to 2 decimal places.)