The transactions relating to the formation of Blue Company Stores Incorporated, and its first month of operations follow.The firm was organized and the stockholders invested cash of $30,000.The firm borrowed $20,000 from the bank; a short-term note was signed.Display cases and other store equipment costing $16,800 were purchased for cash. The original list price of the equipment was $21,000, but a 20% discount was received because the seller was having a sale.A store location was rented, and $4,500 was paid for the first month’s rent.Inventory of $40,000 was purchased; $25,000 cash was paid to the suppliers, and the balance will be paid within 30 days.During the first week of operations, merchandise that had cost $16,000 was sold for $23,000 cash.A newspaper ad costing $300 was arranged for; it ran during the second week of the store’s operations. The ad will be paid for in the next month.Additional inventory costing $12,500 was purchased; cash of $4,000 was paid, and the balance is due in 30 days.In the last three weeks of the first month, sales totaled $41,000, of which $27,700 was sold on account. The cost of the goods sold totaled $26,000.Employee wages for the month totaled $5,700; these will be paid during the first week of the next month.The firm collected a total of $18,400 from the sales on account recorded in transaction i.The firm paid a total of $11,600 of the amount owed to suppliers from transaction e.Required:Prepare the journal entries for each of these transactions.