At the beginning of August, Joel Henry founded Bookmart.com, which sells new and used books online. He is passionate about books but does not have a lot of accounting experience.

1. The company purchased equipment for $5,200 cash. The equipment is expected to be used for 10 or more years.
2. Joels business bought $8,200 worth of inventory from a publisher. The company will pay the publisher within 4560 days.
3. Joels friend Sam lent $5,200 to the business. Sam had Joel write a note promising that Bookmart.com would repay the $5,200 in four months. Because they are good friends, Sam is not going to charge Joel interest.
4. The company paid $2,100 cash for books purchased on account earlier in the month.
5. Bookmart.com repaid the $5,200 loan established in (c).

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