Part $1$ of $2$

$1$

Req $2A$

Req $2$B

points

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.$)$

$\backslash$table$[[$No$,$Transaction,Gen,,Debit,Credit$],[1,$a$,$Cash,V$,16,000$vv$,],[,$Common Stock,$(,,16,000],[2,$b$,$Cash,grad,$37,000,],[,$Notes Payable $($long$-$term$),$V$,,37,000$vv$],[3,$c$,$Equipment,V$,42,000\backslash$times $,],[,$Notes Payable $($short$-$term$),$V$,,6,000],[,$Cash,grad,,$36,000\backslash$times $],[4,$d$,$Supplies,grad,$800,],[,$Accounts Payable,V$,,800]]$

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

Part $1$ of $2$equired information

E$2-15($Algo$)$ Analyzing and Recording Transactions, and Preparing and Evaluating a Balance Sheet $[$LO $2-1,$ LO $2-2,$ LO $2-3,$ LO $2-4,$ LO $2-5]$

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$[$The following information applies to the questions displayed below.$]$

Business Sim Corporation $($BSC$)$ entered into the following four transactions: $($a$)$ Issued $1,000$ common shares to Kelly in exchange for $$16,000.($b$)$ Borrowed $$37,000$ from the bank, promising to repay it in two years. $($c$)$ Bought computer equipment by signing check number $101$ in the amount of $$42,000$ and signing a promissory note for $$6,000$ due in six months. This loan contains a clause $($covenant$)$ that requires Business Sim Corporation $($BSC$)$ to maintain a ratio of current assets to current liabilities of at least $1\mathrm{.}7.($d$)$ Received $$800$ of supplies and promised to pay for them in $30$ days.

E$2-15($Algo$)$ Part $2$

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

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

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