Mr. Q organized a new Internet company, CapU, Inc. The company specializes in baseball-type caps with logos printed on them.

Mr. Q, 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.

Below are the dates and transactions that took place during March 2021:

3/1 - Issued 10,000 shares of $0.01 par value common stock to investors for cash at $32 per share.

3/1 - Borrowed $65,000, at 8%, from the bank to provide additional funding to begin operations; the note is due in two years.

3/1 - Paid $2,300 for the current month's rent of a warehouse and another $2,300 for next month's rent.

3/2 - Paid $2,400 in advance for a one-year fire insurance policy (starting in March of 2021) on the warehouse.

3/2 - Purchased furniture and fixtures for the warehouse for $17,000, paying $5,000 cash and the rest on account. The amount is due within 30 days. The company uses straight-line depreciation and is estimating the useful life of the items to be 12 years with a $800 salvage value.

3/ 15 - Purchased for $29,400 cash WNEU, The University of Pennsylvania, Notre Dame, The University of Texas at Austin, and Michigan State University baseball caps as inventory to sell online.

3/19 - Placed advertisements on Google for a total of $350 cash.

3/24 - Sold caps totaling $21,560, 25% of which was charged on account. The cost of the caps sold was $12,900.

3/29 - Made payment for half the balance of the furniture and fixtures purchased on account from 3/2.

3/30 - Received $410 from a customer on account.

create T-Accounts

3/31 - CapU received a $900 utility bill for utilities used in March. The bill will be paid in April.