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P3-2 Recording Journal Entries (CAP3-2) L03-4 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 a Issued 2,000 shares of $0.01 par value common stock to investors for cash at $20 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 $3.000 cash for rent of a warehouse: $1,500 for the current month's rent and another $1.500 for next month's rent. d. Paid $2,400 for a one-year fire insurance policy on the warehouse (recorded as a prepaid expense). e. Purchased furniture and fixtures for the warehouse for $15,000, paying 53,000 cash and the rest on account. The amount is due within 30 days. 1. Purchased for $2,800 cash The University of Pennsylvania, Notre Dame, The University of Texas at Austin, The Ohio State University, and Michigan State University baseball capsats ASE Inventory to sell online g Placed advertisements on Google for a total of $350 cash; the ads were run immediately h. Sold caps totaling 51.700, half of which was charged account. The cost of the caps sold $900 (Hint: Make two entries) Made full payment for the furniture and fixtures purchased on account in (). J. Recched $210 from customer cent. Required For each of the transactions, prepare journal entries to categoriach count liability (L), stockholders' equity (SE), revenue (R) or expense. Note that transaction () were two entries, one for revenue and one for the related en

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