Patty Stone started a new store to sell backpacks in January. The following events occurred in...

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Patty Stone started a new store to sell backpacks in January. The following events occurred in the first month of operations. a. Issued 5,000 shares of $1 par value common stock to investors for cash at $16 per share. b. Borrowed $50,000 from the bank; the note is due in three years. c. Paid $3,200 for a one-year fire insurance policy on the warehouse (Hint: recorded as a prepaid expense). Coverage will start on February 1st. d. Purchased backpacks for $5,600 cash as inventory to sell online. e. Sold backpacks for $3,800, half of which was charged on account. The cost of the backpacks sold was $2,300. (Hint: Make two entries.) f. Received $1,200 from a customer on account. Required: Prepare journal entries that should be recorded in January for each transaction. Note that transaction (e) will require two entries, one for revenue and one for the related expense. (If no entry is required for a transaction/event, write "No journal entry required") Patty Stone started a new store to sell backpacks in January. The following events occurred in the first month of operations. a. Issued 5,000 shares of $1 par value common stock to investors for cash at $16 per share. b. Borrowed $50,000 from the bank; the note is due in three years. c. Paid $3,200 for a one-year fire insurance policy on the warehouse (Hint: recorded as a prepaid expense). Coverage will start on February 1st. d. Purchased backpacks for $5,600 cash as inventory to sell online. e. Sold backpacks for $3,800, half of which was charged on account. The cost of the backpacks sold was $2,300. (Hint: Make two entries.) f. Received $1,200 from a customer on account. Required: Prepare journal entries that should be recorded in January for each transaction. Note that transaction (e) will require two entries, one for revenue and one for the related expense. (If no entry is required for a transaction/event, write "No journal entry required")