Exercise 4-7 (Algo) Write journal entries LO 6 The transactions relating to the formation of Blue Co. Stores Inc., and its first month of operations follow. a. The firm was organized and the stockholders invested cash of $8,200. b. The firm borrowed $5,400 from the bank; a short-term note was signed. c. Display cases and other store equipment costing $1,750 were purchased for cash. The original list price of the equipment was $1,950, but a discount was received because the seller was having a sale. d. A store location was rented, and $1,550 was paid for the first month's rent. e. Inventory of $14,400 was purchased; $8,900 cash was paid to the suppliers, and the balance will be paid within 45 days. f. During the first week of operations, merchandise that had cost $4,800 was sold for $6,200 cash. g. A newspaper ad costing $120 was arranged for; it ran during the second week of the store's operations. The ad will be paid for in the next month. h. Additional inventory costing $4,050 was purchased; cash of $1,200 was paid, and the balance is due in 30 days. i. In the last three weeks of the first month, sales totaled $13,500, of which $9,400 was sold on account. The cost of the goods sold totaled $8,700. j. Employee wages for the month totaled $1,900; these will be paid during the first week of the next month. k. The firm collected a total of $3,350 from the sales on account recorded in transaction i. I. The firm paid a total of $4,400 of the amount owed to suppliers from transaction e. Required: Prepare the journal entries for each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)