Chad Polovick organized a new company, Cap Universe 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 1,050 shares for $35 per share. May i Borrowed $40,500 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 $1,250 for the current month's rent and another $1,250 for next month's rent. May 1 Paid $1,860 for a one-year fire insurance policy (recorded as a prepaid expense). May 3 Purchased furniture and fixtures for the store for $18,100 on account. The amount is due within 30 days. May 4 Purchased for $2,200 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 $370 cash. May 9 Sold caps for a total of $510, half of which was charged on account. The cost of the caps sold was $255. May 10 Made full payment for the furniture and fixtures purchased on account on May 3. May 14 Received $110 from a customer on 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.) View transaction list Journal entry worksheet Record issuance of shares. Note: Enter debits before credits Date General Journal Debit Credit May 01 Record entry Clear entry View general journal Journal entry worksheet Journal entry worksheet list Journal entry worksheet 1 2 3 5 6 7 8 11 Record payment of insurance expense. Note: Enter debits before credits. Date General Journal Debit Credit May 01 Record entry Clear entry View general journal ook No journa View transaction list Journal entry worksheet View transaction list Journal entry worksheet Journal entry worksheet Journal entry worksheet 1 2 3 4 5 6 7 8 12 Record sale of half the caps purchased on account. Note: Enter debits before credits. Date General Journal Debit Credit May 09 Record entry Clear entry View general journal Prev 1 of 2 !!! Next > Journal entry worksheet Journal entry worksheet 1 ..... 4 5 6 7 8 9 11 Record payment for furniture purchased on account Note: Enter debits before credits. Date General Journal Debit Credit May 10 Record entry Clear entry View general journal Journal entry worksheet 1 ..... 4 5 6 7 8 9 10 3 Record amount received from customer on account. Note: Enter debits before credits. Date General Journal Debit Credit May 14 Record entry Clear entry View general journal w
