118 Part 1 Financial Accousting Mini-Exercise Transaction analysis using T-accounts The Supplies account had a balance of $4,800 at the beginning of the mo $6.400 at the end of of the month and a. LO 6, 7 the month. The cost of supplies purchased during the was $15,600. Calculate the cost of supplies used during the month. h. Wages Payable had a balance of $11.600 at the end of the month. During month, $56,000 of wages were paid to employees. Wages expense during the month totaled $59,000. Calculate Wages Payable at the of the month. nning pa Required: Solve for the missing amounts using a T-account for the balance sheet accounts in each situation. Assume that there is only one debit entry and one credit entry in the acco during the month. ? correct Exercises All applicable Exercises are available in Connect. Record transactions and calculate financial statement amounts The transactions relating to the formation of Blue Co. Stores, Inc., and its first month of operations follow. Prepare an answer sheet with the columns shown. Record each transaction in the appropriate columns of your answer sheet. Show the amounts involved and indicate how each account is affected (+ or-. After all transactions have been recorded, calculate the total assets, liabilities, and stockholders' equityat the end of the month and calculate the amount of net income for the month Exercise 4.5 LO 2, 6,7 The firm was organized and the stockholders invested cash of $16,000. a. b. The firm borrowed $10,000 from the bank; a short-term note was signed. c. Display cases and other store equipment costing $3,500 were purchased for cash. The original list price of the equipment was $3,800, but a discount was received because the seller was having a sale. d. A store location was rented, and $2,800 was paid for the first month's rent. e. Inventory of $30,000 was purchased; $18,000 cash was paid to the suppliers, and f. During the first week of operations, merchandise that had cost $8,000 was sold g. A newspaper ad costing $200 was arranged for, it ran during the second week of h. Additional inventory costing $8,400 was purchased; cash of $2,400 was paid i. In the last three weeks of the first month, sales totaled $27,000, of which $19,200 j. Employee wages for the month totaled $3,700; these will be paid during the first k. The firm collected a total of $6,320 from the sales on account recorded in L. The firm paid a total of $9,440 of the amount owed to suppliers from transaction e the balance will be paid within 30 days. for $13,000 cash. the store's operations. The ad will be paid for in the next month. and the balance is due in 30 days. was sold on account. The cost of the goods sold totaled $18,000. week of the next month. transaction