Charles Badurski organized a new company, CollegeCaps, Inc. The company operates a small store in an area mall and specializes in baseball-type caps with logos printed on them. Charles, 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 two weeks of operations.

Required:
For each of the transactions, prepare journal entries. Be sure to categorize each account as an asset (A), liability (L), stockholders* equity (SE). revenue (R). or expense (E).

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May 1 Issued 1,000 shares of stock to investors for $30 per share. May 1 May 1 May 1 May 3 May 4 May 5 May 9 May 10 May 14 Borrowed $50,000 from the bank to provide additional funding to begin operations; the note is due in two years. Paid $1,200 for the current month's rent and another $1,200 for next month's rent. Paid $2,400 for a one-year fire insurance policy (recorded as a prepaid expense). Purchased furniture and fixtures for the store for $15,000 on account. The amount is due within 30 days. Purchased a supply of The University of Texas, Southern Methodist University, and Michigan State University baseball caps for the store for $1,800 cash. Placed advertisements in local college newspapers for a total of $250 cash. Sold caps totaling $400, half of which was charged on account. The cost of the caps sold was $150. Made full payment for the furniture and fixtures purchased on account on May 3. Received $50 from a customer on account.