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E$2-15($Algo$)$ Analyzing and Recording Transactions, and Preparing and Evaluating a Balance Sheet $[$LO $2-1,$ LO $2-2,$ LO $2-3,$ LO $2-4,$ LO $2-5]$

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Business Sim Corporation $($BSC$)$ entered into the following four transactions: $($a$)$ Issued $1,000$ common shares to Kelly in exchange for $$16,000.($b$)$ Borrowed $$37,000$ from the bank, promising to repay it in two years. $($c$)$ Bought computer equipment by signing check number $101$ in the amount of $$42,000$ and signing a promissory note for $$6,000$ due in six months. This loan contains a clause $($covenant$)$ that requires Business Sim Corporation $($BSC$)$ to maintain a ratio of current assets to current liabilities of at least $1\mathrm{.}7.($d$)$ Received $$800$ of supplies and promised to pay for them in $30$ days.

E$2-15($Algo$)$ Part $2$

$2-$a$.$ Prepare journal entries for the transactions described.

$2-$b$.$ Prepare T$-$accounts. Assume all beginning balances are zero.Required information