Exercise Record transactions and calculate financial statement amounts The transactions relating to the formation of Blue Co. Stores Inc. and its frst. 4.7. month of operations follow. Prepare an answer sheot with the columns shown. Record cach transaction in the appropilate columns of your answer L0 4-2, 4-6, sheet. Show the amounts involved and indicate how each account is aflected (+ or -). After all transacticns have been recorded, cakculate the total 4.7 assets, llabilities, and stockholders' equity at the end of the month and calculate the amount of net income for the month. a. The fim was organized and the stocktolders 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 wete purchased for cash. The original list price of the equipenent was $21,000, but a 20% discount was recetved because the selier 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 supplers, 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. 9. Anewspaper ad costing $300 was arranged for, it ran during the second woek 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 hee balarkte is due in 30 days. L. In the last three weeks of the first month, sales totaled $41,000, of which $27,700 was soid on acocunt. The oost of the goods sold totaled $26,000. 1. Employee wages for the month totaled 55, 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 k. L. The firm paid a total of $11,600 of the amount owed to suppliers from transaction e. Answer Optional Prepare an income statement and balance sheet Afer you have completed parts a through I in Exercise 4.7, prepare an income statement for continuatfiep. Co. Stores inc. for the month presented and a balance sheet at the end of the month using the caplions shown on the answer sheet