Katy Williams is the manager of Blue Light Arcade. The company provides entertainment for par-ties and special events. Prepare journal entries for the following events relating to the year ended December 31. If the event is not a transaction, write “no transaction.”
a. Blue Light Arcade received $ 50 cash on account for a birthday party held two months ago.
b. Agreed to hire a new employee at a monthly salary of $ 3,000. The employee starts work next month.
c. Paid $ 2,000 for a table top hockey game purchased last month on account.
d. Repaid a $ 5,000 bank loan that had been outstanding for six months. (Ignore interest.)
e. The company purchased an air hockey table for $ 2,200, paying $ 1,000 cash and signing a short- term note for $ 1,200.