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Joel Henry founded Bookmart.com at the beginning of August, which sells new and used books online. He is passionate about books but does not have a lot of accounting experience. Help Joel by preparing

Joel Henry founded Bookmart.com at the beginning of August, which sells new and used books
online. He is passionate about books but does not have a lot of accounting experience. Help Joel
by preparing journal entries for the following events. If the event is not a transaction, write “no
transaction.”
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. Bookmart.com repaid the $4,000 loan established in ( c )

 

Aug 24 2020 View more View Less

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