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identifying transactions and preparing journal entries M2-15 Identifying...

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Accounting

identifying transactions and preparing journal entries

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M2-15 Identifying Transactions and Preparing Journal Entries (LO 2-3] 75 points At the beginning of August, Joel Henry founded Bookmart.com, which sells new and used books online. He is passionate about books but does not have a lot of accounting experience. eBook Print a. The company purchased equipment for $4,000 cash. The equipment is expected to be used for 10 or more years. b. Joel's business bought $7,000 worth of inventory from a publisher. The company will pay the publisher within 45-60 days. c. Joel's friend Sam lent $4,000 to the business. Sam had Joel write a note promising that Bookmart.com would repay the $4,000 in four months. Because they are good friends, Sam is not going to charge Joel interest. d. The company paid $1,500 cash for books purchased on account earlier in the month e Bookmail.com repaid the $4,000 loan established in (c). References Prepare journal entries for the above 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 Type here to search

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