Exercise 4-9 (Static) Write journal entries LO 4-6 The transactions relating to the formation of Blue Company Stores Incorporated, and its first month 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 months rent.

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

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

Required: Prepare the journal entries for each of these transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

Journal entry worksheet The firm was organized and the stockholders invested cash of $30,000. Note: Enter debits before credits