EE$2-15$ Analyzing and Recording Transactions, and Preparing and Evaluating a Balance Sheet $[$LO $2-2,$ LO $2-3,$ LO $2-4,$ LO $2-5]$

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Business Sim Corp. $($BSC$)$ issued $1,000$ common shares to Kelly in exchange for $$12,000.$ BSC borrowed $$30,000$ from the bank, promising to repay it in two years. BSC purchased computer equipment for $$40,000,$ signing a six$-$month note for $$5,000,$ and paying the balance with check number $101.$ BSC received $$900$ of supplies purchased on account. BSC$$s loan contains a clause $($covenant$)$ that requires BSC to maintain a ratio of current assets to current liabilities of at least $1\mathrm{.}3.$

E$2-15$ Part $2$

$2-$a$.$ Prepare journal entries for the transactions described.

$2-$b$.$ Prepare T$-$accounts. Assume all beginning balances are zero.