Question

Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return Ryan Terlecki organized a new Internet company, CapUniverse, Inc. 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. 3. Issued 2,000 shares of $0.01 par value common stock to investors for cash at $20 per share. b. Borrowed $69,000 from the bank to provide additional funding to begin operations; the note is due in two years. c. Paid $2,600 cash for rent of a warehouse: $1,300 for the current month's rent and another $1,300 for next month's rent. d. Paid $1,920 for a one-year fire insurance policy on the warehouse (recorded as a prepaid expense) e. Purchased furniture and fixtures for the warehouse for $16,000, paying $2,400 cash and the rest on account. The amount is due within 30 days. f. Purchased for $2,900 cash The University of Pennsylvania, 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 $280 cash; the ads were run immediately h. Sold caps totaling $1.900, half of which was charged on account. The cost of the caps sold was $1,100. (Hint: Make two entries.) 1. Made full payment for the furniture and fixtures purchased on account in (e). j. Received $230 from a customer on account. Required: Prepare journal entries for each transaction. Note that transaction (1) will require two entries, one for revenue and one for the related expense. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is not complete. No Transaction General Journal Credit Debit 69,000 < Prev 3 of 4 ! Next >

Answer 1

Answer -

No.	Transaction	General Journal	Debit ($)	Credit ($)
1.	a.	Cash [2000 shares * $20] Common Stock [2000 shares * $0.01] Paid-In Capital in Excess of Par Value [Difference]	40000 - -	- 20 39980
2.	b.	Cash Notes Payable	69000 -	- 69000
3.	c.	Rent Expense Prepaid Expense Cash	1300 1300 -	- - 2600
4.	d.	Prepaid Expense Cash	1920 -	- 1920
5.	e.	Furniture and Fixtures Cash Accounts Payable [Difference]	16000 - -	- 2400 13600
6.	f.	Inventory Cash	2900 -	- 2900
7.	g.	Advertising expense Cash	280 -	- 280
8.	h. (1)	Cash [$1900 / 2] Accounts Receivable [$1900 / 2] Sales Revenue	950 950 -	- - 1900
9.	h. (2)	Cost of goods sold Inventory	1100 -	- 1100
10.	i.	Accounts Payable Cash	13600 -	- 13600
11.	j.	Cash Account receivable	230 -	- 230