Chris Chudkosky organized a new company, CollegeCaps, Inc. The company operates a small store in an area mall and specializes in baseball-type caps with logos printed on them. Chris, 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 two weeks of operations.
a. Issued 1,000 shares of stock to investors for cash at $30 per share.
b. Borrowed $50,000 from the bank to provide additional funding to begin operations; the note is due in two years.
c. Paid $1,200 for the current month's rent and another $1,200 for next month's rent.
d. Paid $2,400 for a one-year fire insurance policy (recorded as a prepaid expense).
e. Purchased furniture and fixtures for the store for $15,000 on account. The amount is due within 30 days.
f. Purchased The University of Texas, Texas Christian University, Texas A&M, and Michigan State University baseball caps as inventory to sell in the store for $1,800 cash.
g. Placed advertisements in local college newspapers for a total of $250 cash.
h. Sold caps totaling $400, half of which was charged on account. The cost of the caps sold was $150.
i. Made full payment for the furniture and fixtures purchased on account in (e).
j. Received $50 from a customer on account.

Required:
For each of the transactions, prepare journal entries. Be sure to categorize each account as an asset (A), liability (L), stockholders' equity (SE), revenue (R), or expense (E). Note that transaction (h) will require two entries, one for revenue and one for the related expense.