Spreadsheet analysis of transactions and preparation of income statement and balance sheet. Refer to the information for Regaldo Department Stores as of January 31, Year 8 in Problem 30 of Chapter 2. Regaldo Department Stores opened for business during February, Year 8. It uses the accrual basis of accounting. Transactions and events during February were as follows.

(1) February 1: Purchased display counters and computer equipment for Ps9(),()0(). The firm borrowed Ps90,000 from a local bank to finance the purchases. The bank loan bears interest at a rate of 12 percent each year and is repayable with interest on February 1, Year 9.

(2) During February: Purchased merchandise on account totaling Ps2l7,900.

(3) During February: Sold merchandise costing Ps 162,400 to various customers for Ps62,900 cash and Ps 194,600 on account. Hint: Enter the sales transaction and the recognition of the cost of goods sold in separate columns on the spreadsheet.

(4) During February: Paid to employees compensation totaling Ps32,400 for services rendered during the month.

(5) During February: Paid utility (electric, water, gas) bills totaling Ps2,7()0 for services received during February.

(6) During February: Collected Ps84,600 from customers from sales on account (see transaction (3) above).

(7) During February: Paid invoices from suppliers of merchandise (see transaction (2)

above) with an original purchase price of Ps2 10,000 in time to receive a 2-percent discount for prompt payment and Ps29,000 to other suppliers after the discount period had elapsed. The firm treats discounts taken as a reduction in the acquisition cost of merchandise. Hint: Enter the payment of accounts payable within the discount period and after the discount period in separate columns on the spreadsheet.

(8) February 28: Compensation that employees earned during the last several days in February and that the firm will pay early in March totaled Ps6,700.

(9) February 28: Utility services that the firm used during February and that the firm will not pay until March totaled Ps800.

( 10) February 28: The display counters and computer equipment purchased in transaction (1 )
have an expected useful life of live years and zero salvage value at the end of the five years. The firm depreciates such equipment on a straight-line basis over the expected life and uses an Accumulated Depreciation account.
(11) February 28: The firm recognizes an appropriate portion of the prepaid rent as of January 31 (see Problem 30 in Chapter 2).
(12) February 28: The firm recognizes an appropriate portion of the prepaid insurance as of January 31 (see Problem 30 in Chapter 2).
(13) February 28: The firm amortizes (that is, recognizes as an expense) the patent over 60 months (see Problem 30 in Chapter 2). The firm does not use a separate Accumulated Amortization account for the patent.
(14) February 28: The firm recognizes an appropriate amount of interest expense on the loan in transaction (1) above.
(15) February 28: The firm is subject to an income tax rate of 30 percent of net income before income taxes. The income tax law requires firms to pay income taxes on the fifteenth day of the month after the end of each quarter (that is, April 15, July 15.
October 15, and January 15).

a. Using the transactions spreadsheet template available with this book, enter the balances in balance sheet accounts on February 1, Year 8 (see Problem 30 in Chapter 2) and the effects of the 15 transactions above. Be sure that you enter the dual effects of each transaction so that you maintain the balance sheet equality of assets with liabilities and shareholders' equity.

b. Prepare an income statement for the month of February, Year 8.

c. Prepare a comparative balance sheet as of January 31 and February 28. Year 8.