Ryan Terlecki organized new Internet company, CapUniverse, Incorporated. The company specializes in baseball-type caps with logos printed on them. Ryan, who is never without a cap, believes that his target market is college and high school students. You have been hired to record the transactions occurring in the first month of operations. a. Issued 2,400 shares of $0.01 par value common stock to investors for cash at $24 per share. b. Borrowed $64,000 from the bank to provide additional funding to begin operations; the note is due in two years. c. Paid $2,100 cash for rent of a warehouse: $1,050 for the current month's rent and another $1,050 for next month's rent. d. Paid $2,040 for a one-year fire insurance policy on the warehouse (recorded as a prepaid expense). e. Purchased furniture and fixtures for the warehouse for $18,000, paying $2,200 cash and the rest on account. The amount is due within 30 days. f. Purchased for $3,000 cash Indiana University, University of Washington, Notre Dame, The University of Texas at Austin, The Ohio State University, and Michigan State University baseball caps as inventory to sell online. g. Placed advertisements on Google for a total of $290 cash; the ads were run immediately. h. Sold caps totaling $2,400, half of which was charged account. i. The cost of the caps sold in (h) was $1,600. j. Made full payment for the furniture and fixtures purchased on account in (e). k. Received $290 from a customer on account. Required: Prepare journal entries for each transaction. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Ryan Terlecki organized new Internet company, CapUniverse, Incorporated. The company specializes in baseball-type caps with logos printed on them. Ryan, who is never without a cap, believes that his target market is college and high school students. You have been hired to record the transactions occurring in the first month of operations. a. Issued 2,400 shares of $0.01 par value common stock to investors for cash at $24 per share. b. Borrowed $64,000 from the bank to provide additional funding to begin operations; the note is due in two years. c. Paid $2,100 cash for rent of a warehouse: $1,050 for the current month's rent and another $1,050 for next month's rent. d. Paid $2,040 for a one-year fire insurance policy on the warehouse (recorded as a prepaid expense). e. Purchased furniture and fixtures for the warehouse for $18,000, paying $2,200 cash and the rest on account. The amount is due within 30 days. f. Purchased for $3,000 cash Indiana University, University of Washington, Notre Dame, The University of Texas at Austin, The Ohio State University, and Michigan State University baseball caps as inventory to sell online. g. Placed advertisements on Google for a total of $290 cash; the ads were run immediately. h. Sold caps totaling $2,400, half of which was charged account. i. The cost of the caps sold in (h) was $1,600. j. Made full payment for the furniture and fixtures purchased on account in (e). k. Received $290 from a customer on account. Required: Prepare journal entries for each transaction. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Ryan Terlecki organized a new Internet company, CapUniverse, Incorporated. The company specializes in baseball-type caps with
logos printed on them. Ryan, who is never without a cap, believes that his target market is college and high school students. You have
been hired to record the transactions occurring in the first month of operations.
a. Issued 2,400 shares of $0.01 par value common stock to investors for cash at $24 per share.
b. Borrowed $64,000 from the bank to provide additional funding to begin operations; the note is due in two years.
c. Paid $2,100 cash for rent of a warehouse: $1,050 for the current month's rent and another $1,050 for next month's rent.
d. Paid $2,040 for a one-year fire insurance policy on the warehouse (recorded as a prepaid expense).
e. Purchased furniture and fixtures for the warehouse for $18,000, paying $2,200 cash and the rest on account. The amount is due
within 30 days.
f. Purchased for $3,000 cash Indiana University, University of Washington, Notre Dame, The University of Texas at Austin, The Ohio
State University, and Michigan State University baseball caps as inventory to sell online.
g. Placed advertisements on Google for a total of $290 cash; the ads were run immediately.
h. Sold caps totaling $2,400, half of which was charged on account.
i. The cost of the caps sold in (h) was $1,600.
j. Made full payment for the furniture and fixtures purchased on account in (e).
k. Received $290 from a customer on account.
Required:
Prepare journal entries for each transaction.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
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