2-

• Record amount borrowed signing long term notes.

3

• Record payment of current month and next month's rent.

4

• Record payment of insurance expense.

5

• Record purchase of furniture and fixtures on account.

6

• Record purchase of baseball caps.

7

• Record advertisement expenses.

8

• Record sale of half the caps purchased on account.

9

• Record the cost of the caps sold.

10

• Record payment for furniture purchased on account

11

• Record amount received from customer on account.

Chad Polovick organized a new company, CapUniverse Inc. The company operates a small store in an area mall and specializes in baseball- type caps with logos printed on them. Chad, who is never without a cap, believes that his target market is college students. You have been hired to record the transactions occurring in the first two weeks of operations: May 1 Issued 1,750 shares for $35 per share. May 1 Borrowed $47,500 from the bank to provide additional funding to begin operations. The note is due in two years with interest at 10 percent annually. May 1 Paid $1,950 for the current month's rent and another $1,950 for next month's rent. May 1 Paid $2,700 for a one-year fire insurance policy (recorded as a prepaid expense). May 3 Purchased furniture and fixtures for the store for $19,500 on account. The amount is due within 30 days. May 4 Purchased for $3,600 cash a supply of University of Waterloo, York University, and Saint Mary's University baseball caps to be sold online. May 5 Placed advertisements on Google for a total of $510 cash. May 9 Sold caps for a total of $650, half of which was charged on account. The cost of the caps sold was $325. May 10 Made full payment for the furniture and fixtures purchased on account on May 3. May 14 Received $250 from a customer or account. Required: Prepare a journal entry to record each of the transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Required: Prepare a journal entry to record each of the transactions. (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 > Record issuance of shares. Note: Enter debits before credits. Date General Journal Debit Credit May 01 Record entry Clear entry View general journal