a) Received cash of $60,000 from two investors ($30,000 each). Each investor was issued 3,000 shares of common stock. b) Borrowed $40,000 from a local bank and signed two notes. The first note for $10,000 requires payment of principal and 10% interest in six months. The second note for $30,000 requires the payment of principal in two years. Interest at 10% is payable each year on July 1, 2025, and July 1, 2026. c) Paid $24,000 in advance for one year's rent on the store building. d) Purchased office equipment from eTronics for $12,000 cash. e) Purchased $60,000 of clothing inventory on account from the Birdwell Wholesale Clothing Company.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.