AND PART B

Required information Business Sim Corp. (BSC) issued 1,000 common shares to Kelly in exchange for $12,000. BSC borrowed $33,000 from the bank, promising to repay it in two years. BSC paid $38,000 for computer equipment with check number 101 and signed a note for $5,000 due in six months. BSC received $600 of supplies purchased on account. BSC's loan contains a clause ("covenant") that requires BSC to maintain a ratio of current assets to current liabilities of at least 1.3. 2-a. Prepare journal entries for the transactions described. 2-b. Prepare T-accounts. Assume all beginning balances are zero. Complete this question by entering your answers in the tabs below. Reg 2A Req 2B Prepare journal entries for the transactions described. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View transaction list Journal entry worksheet Business Sim Corp. (BSC) issued 1,000 common shares to Kelly in exchange for $12,000. Record the transaction. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 View transaction list Journal entry worksheet BSC borrowed $33,000 from the bank, promising to repay it in two years. Record the transaction. Note: Enter debits before credits. Transaction General Journal Debit Credit 2 View transaction list Journal entry worksheet BSC paid $38,000 for computer equipment with check number 101 and signed a note for $5,000 due in six months. Record the transaction. Note: Enter debits before credits. Transaction General Journal Debit Credit 3 View transaction list Journal entry worksheet BSC received $600 of supplies purchased on account. Record the transaction. Note: Enter debits before credits. Transaction General Journal Debit Credit 4 Prepare T-accounts. Assume all beginning balances are zero. Cash Supplies Beg. Bal. Beg. Bal. End. Bal. End. Bal. Equipment Accounts Payable Beg. Bal. Beg. Bal. End. Bal. End. Bal. Notes Payable (long-term) Notes Payable (short-term) Beg. Bal. Beg. Bal. End. Bal. End. Bal. End. Bal. End. Bal. Notes Payable (long-term) Notes Payable (short-term) Beg. Bal. Beg. Bal. End. Bal. End. Bal. Common Stock Beg. Bal. End. Bal.