Exercise 4-7 (Static) 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 $16,000. b. The firm borrowed $10,000 from the bank: a short-term note was signed. c. Display cases and other store equipment costing $3.500 were purchased for cash. The original list price of the equipment was $3,800, but a discount was received because the seller was having a sale. d. A store location was rented, and $2,800 was paid for the first month's rent e. Inventory of $30,000 was purchased: $18,000 cash was paid to the suppliers, and the balance will be paid within 30 days. t. During the first week of operations, merchandise that had cost $8.000 was sold for $13,000 cash. g. A newspaper ad costing $200 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 $8,400 was purchased cash of $2.400 was paid, and the balance is due in 30 days. 1. In the last three weeks of the first month, sales totaled $27,000 of which $19.200 was sold on account. The cost of the goods sold totaled $18.000 J. Employee wages for the month totaled $3.700; these will be paid during the first week of the next month. k. The firm collected a total of $6.320 from the sales on account recorded in transaction L 1. The firm paid a total of $9.440 of the amount owed to suppliers from transactione 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.) View transaction list Journal entry worksheet 1 > 2 3 14 4 5 6 7 The firm was organized and the stockholders invested cash of $16.000 1. i ne Tirm paid a total or $4,440 or 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 Joumal required" In the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 14 The firm was organized and the stockholders invested cash of $16,000. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal