P 2-1a. Entrepreneurs Consultants,

P 2-1a. Entrepreneurs Consultants, a state agency, was established to provide consulting services to small businesses.  It maintains only a single general fund and accounts for its activities on a modified accrual basis.  Prepare journal entries in the general fund to record each of the transactions or other events:

1. It received an unassigned grant of $100,000

2. It purchased five computers at $2,000 each

3. It paid wages and salaries of $6,000

4. It borrowed $24,000 from a bank to enable it to purchase an automobile.  It gave the bank a long-term note

5. It purchased the automobile for $24,000

6. It made its first payment on the note – interest of $200

7. It destroyed one of its computers in an accident.  The computer was not insured