E$4-9$

The transactions relating to the formation of Blue Company Stores Incorporated, and its first months of operations follow.

a$.$ The firm was organized and the stockholders invested cash of $$30,000$

b$.$ The firm borrowed $$20,000$ from the bank; a short$-$term note was signed.

c$.$ Display cases and other store equipment costing $$16,800$ were purchased for cash. The original list price of the equipment was $$21,000,$ but a $20\%$ discount was received because the seller was having a sale.

d$.$ A store location was rented, and $$4,500$ was paid for the first month's rent.

e$.$ Inventory of $$40,000$ was purchased; $$25,000$ cash was paid to the suppliers, and the balance will be paid withing $30$ days.

f$.$ During the first week of operations, merchandise that had cost $$16,000$ was sold for $$23,000$ cash.

g$.$ A newspaper ad costing $$300$ was arranged for; it ran during the second week of the stores operations. The ad will be paid for in the next month.

h$.$ Additional inventory costing $$12,500$ was purchased, cash of $$4,000$ was paid, and the balance is due in $30$ days.

i$.$ In the last three weeks of the first month, sales totaled $$41,000,$ of which $$27,700$ was sold on account. The cost of the goods sold totaled $$26,000.$

j$.$ Employee wages for the month totaled $$5,700$; these will be paid during the first week of the next month.

k$.$ The firm collected a total of $$18,400$ from the sales on account recorded in transactions i$.$

l$.$ The firm paid a total of $$11,600$ of the amount owed to suppliers from transaction e$.$

Prepare the journal entries for each of these transactions.

Note; If no entry is required for a through l$,$ put no journal entry required.