2. (a, b, c, d, e)

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. Prepare journal entries for the transactions. a. The company purchased equipment for $4,200 cash. The equipment is expected to be used for 10 or more years. Record the transaction. b. Joel's business bought $7,200 worth of inventory from a publisher. The company will pay the publisher within 45-60 days. Record the transaction. c. Joel's friend Sam lent $4,200 to the business. Sam had Joel write a note promising that Bookmart.com would repay the $4,200 in four months. Because they are good friends, Sam is not going to charge Joel interest. Record the transaction. d. The company paid $1,600 cash for books purchased on account earlier in the month. Record the transaction. Record the transaction. e. Bookmart.com repaid the $4,200 loan established in (c). Record the transaction