Joel Henry founded Bookmart. com at the beginning of August, which sells new and used books online. He is passionate about books but does not have a lot of accounting experience. Help Joel by preparing accounting equation effects for the following transactions. (Enter any decreases to account balances with a minus sign.)
a. The company purchased equipment for $5,100 cash. The equipment is expected to be used for 10 or more years.
b. Joel's business bought $8,100 worth of inventory from a publisher. The company will pay the publisher within 45-60 days.
c. Joel's friend Sam lent $5,100 to the business. Sam had Joel write a note promising that Bookmart. com would repay the $5,100 in four months. Because they are good friends, Sam is not going to charge Joel interest.
d. The company paid $2,050 cash for books purchased on account earlier in the month.
e. Bookmart. com repaid the $5,100 loan established in (c).
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