2a s At the beginning of August, Joel Henry founded Bookmart.com, which sells new and used books online. H passionate about books but does not have a lot of accounting experience. a. The company purchased equipment for $5,900 cash. The equipment is expected to be used for 10 or me . Joel's business bought $8.900 worth of inventory from a publisher. The company will pay the publisher days. Joel's friend Sam lent $5,900 to the business. Sam had Joel write a note promising that Bookmart.com the $5,900 in four months. Because they are good friends, Sam is not going to charge Joel interest d. The company paid $2,450 cash for books purchased on account earlier in the month. e. Bookmart.com repaid the $5,900 loan established in (c) Prepare journal entries for the above transactions. (If no entry is required for a transaction/event, select " Entry Required" in the first account field.) ce View transaction list Journal entry worksheet 1 2 3 4 5 The company purchased equipment for $5,900 cash. The equipment is expected to be used for 10 or more years. Record the transaction. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry View general journal Clear entry Select appropriate letter to each of its related definition in the list given below. Definition A. Economic resources to be used or turned into cash within one year. B. Reports assets, Liabilities, and stockholders' equity. C. Decrease assets; increase liabilities and stockholders' equity. D. Increase assets; decrease liabilities and stockholders' equity. E. An exchange or event that has a direct and measurable financial effect. F. Accounts for a business separate from its owners. G. The principle that assets should be recorded at their original cost to the company: H. A standardized format used to accumulate data about each item reported on financial statements. I. The basic accounting equation. J. The two equalities in accounting that aid in providing accuracy. K. The account credited when money is borrowed from a bank using a promissory note. L. Cumulative earnings of a company that have not yet been distributed to the owners. M. Every transaction has at least two effects. N. Amounts presently owed by the business. Definition Term 1. Transaction 2. Separate Entity Assumption 3. Balance Sheet 4. Liabilities Assets Liabilities + Stockholders' Equity 6. Current Assets 7. Notes Payable 8. Duality of Effects 9. Retained Earnings 10. Debit 5 As described in a recent annual report, Digital Diversions, Inc. (DD), designs, develops, and distributes video games for computers and advanced game systems. Ot has been operating for only one full year. Required: For each of the following accounts from Dors recent balance sheet complete the following table Indicate whether the account is classified as a current asset (CA), noncurrent asset (NCA), current liability (CL), noncurrent liability (NCL), or stockholders' equity (SE), and whether the account usually has a debit (chor credit (cs) balonce. Account Balance Sheet Classification Debitor Credit Balance 1. Land 2. Retained Earnings 3 Notes Payable (due in three years) 4. Accounts Receivable 5. Supplies Common Stock 7. Equipment 8. Accounts Payable 9. Cash 10. Income Taxes Payable wal
