Ch. 4 Homework Samt Submit Check my work 33.33 pos 1 01 H Phi Weferences Exercise 4-7 (Static) Record transactions and calculate financial statement amounts LO 4-2, 4-6, 4-7 The transactions relating to the formation of Blue Company Stores Incorporated, and its first month of operations follow a. The firm was organized and the stockholders invested cash of $30,000. b. The firm borrowed $20,000 from the bank; a short-term note was signed c. Display cases and other store equipment costing $16.800 were purchased for cash. The original list price of the equipment was $21,000, but a 20% discount was received because the seller was having a sale. d. A store location was rented, and $4,500 was paid for the first month's rent e. Inventory of $40,000 was purchased: $25,000 cash was paid to the suppliers, and the balance will be paid within 30 days. f. During the first week of operations, merchandise that had cost $16,000 was sold for $23,000 cash g. A newspaper ad costing $300 was arranged for, it ran during the second week of the store's operations. The ad will be paid for in the next month h. Additional inventory costing $12.500 was purchased; cash of $4,000 was paid, and the balance is due in 30 days L. In the last three weeks of the first month, sales totaled $41,000, of which $27,700 was sold on account. The cost of the goods sold totaled $26,000. Employee wages for the month totaled $5,700; these will be paid during the first week of the next month. k. The firm collected a total of $18.400 from the sales on account recorded in transaction i 1. The firm paid a total of $11,600 of the amount owed to suppliers from transaction e Required: a. Record each transaction in the appropriate columns. Indicate the financial statement effect. b. Calculate the total assets, liabilities, and stockholders' equity at the end of the month and calculate the amount of net income for the month. c. 1. After recording transactions a through I prepare an income statement for Blue Company Stores Incorporated for the month presented. 2. After recording transactions a through I. prepare a balance sheet at the end of the month. Complete this question by entering your answers in the tabs below. 1 2. After recording transactions a through I prepare a balance sheet at the end of the month Complete this question by entering your answers in the tabs below. 33.33 points Required A Required B Required C1 Required C2 Record each transaction in the appropriate columns. Indicate the financial statement effect Note: Enter decreases with a minus sign to indicate a negative financial statement effect Help Subm Check my work LIABILITIES STOCKHOLDERS EQUITY Transaction Cash He Accounts Receivable Merchandise Inventory Equipment Notes Accounts Paid-in Retained Paya Payalis Capital Eamings Revenu Expen a Pi B References f h. 1 k L Required> Mc References Em Conected a total of $18,400 from the sales on account recorded in transaction L. The firm paid a total of $11,600 of the amount owed to suppliers from transaction e Required: MEMINE THERE month a. Record each transaction in the appropriate columns. Indicate the financial statement effect. b. Calculate the total assets, liabilities, and stockholders' equity at the end of the month and calculate the amount of net income for the month. c. 1. After recording transactions a through I, prepare an income statement for Blue Company Stores Incorporated for the month presented 2. After recording transactions a through I, prepare a balance sheet at the end of the month Complete this question by entering your answers in the tabs below. Required A Required B Required C1 Required C2 Calculate the total assets, liabilities, and stockholders' equity at the end of the month and calculate the amount of net income for the month. Total assets Total liables Stockholders' Equity Net Income Next> Prev 33.33 points 1 the month c. 1. After recording transactions a through 1, prepare an income statement for Blue Company Stores Incorporated for the month presented. 2. After recording transactions a through 1, prepare a balance sheet at the end of the month. Complete this question by entering your answers in the tabs below. alloo Required A Required Required C1 Required C2 H P References After recording transactions a through 1, prepare an income statement for Blue Company Stores Incorporated for the mont presented. Note: Enter decreases with a minus sign to indicate a negative income statement effect BLUE COMPANY STORES INCORPORATED Income Statement 33.33 Mc Graw P D Required A Required B Required C1 Required C2 After recording transactions a through 1, prepare a balance sheet for Blue Company Stores Incorporated at the end of the month. BLUE COMPANY STORES INCORPORATED Balance Sheet Total cument ass Assots Total assets 0 Liabilities Total abilities $ 0 Stockholders' Equity Total stockholders' equity Tolal labites and stockholders' equity 0 Prev 1 of 3 Next >