Ryan Terlecki organized a new Internet company, CapUniverse, Incorporated. The company specializes in baseball-type caps with...

 

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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 2,600 shares of $0.01 par value common stock to investors for cash at $26 per share. b. Borrowed $60,000 from the bank to provide additional funding to begin operations; the note is due in two years. c. Paid $2,400 cash for rent of a warehouse: $1,200 for the current month's rent and another $1,200 for next month's rent. d. Paid $1,560 for a one-year fire insurance policy on the warehouse (recorded as a prepaid expense). e. Purchased furniture and fixtures for the warehouse for $19,000, paying $2,600 cash and the rest on account. The amount is due within 30 days. f. Purchased for $3,100 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 $250 cash; the ads were run immediately. h. Sold caps totaling $1,900, half of which was charged on account. i. The cost of the caps sold in (h) was $1,100. j. Made full payment for the furniture and fixtures purchased on account in (e). k. Received $270 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. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 11 > Issued 2,600 shares of $0.01 par value common stock to investors for cash at $26 per share. 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 2,600 shares of $0.01 par value common stock to investors for cash at $26 per share. b. Borrowed $60,000 from the bank to provide additional funding to begin operations; the note is due in two years. c. Paid $2,400 cash for rent of a warehouse: $1,200 for the current month's rent and another $1,200 for next month's rent. d. Paid $1,560 for a one-year fire insurance policy on the warehouse (recorded as a prepaid expense). e. Purchased furniture and fixtures for the warehouse for $19,000, paying $2,600 cash and the rest on account. The amount is due within 30 days. f. Purchased for $3,100 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 $250 cash; the ads were run immediately. h. Sold caps totaling $1,900, half of which was charged on account. i. The cost of the caps sold in (h) was $1,100. j. Made full payment for the furniture and fixtures purchased on account in (e). k. Received $270 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. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 11 > Issued 2,600 shares of $0.01 par value common stock to investors for cash at $26 per share.

Answer rating: 100% (QA)

a Issued 2600 shares of 001 par value common stock to investors for cash at 26 per share Solution The company issued 2600 shares of common stock at 26 ... View the full answer