Kaylee James, a connoisseur of fine chocolate, opened Kaylee's Sweets in Collegetown on February 1. The shop specializes in a selection of gourmet chocolate candies and a line of gourmet ice cream. You have been hired as manager. Your duties include maintaining the store's financial records. The following transactions occurred in February, the first month of operations. a. Received four shareholders' contributions totaling $27,900 cash to form the corporation; issued 500 shares of $0.10 par value common stock. b. Paid three months' rent for the store at $1,830 per month (recorded as prepaid expenses). c. Purchased and received candy inventory for $5,900 on account, due in 60 days. d. Purchased supplies for $1,330 cash. e. Negotiated and signed a two-year $15,000 loan at the bank, receiving cash at the time. f. Used the money from (e) to purchase a computer for $3,000 (for recordkeeping and inventory tracking); used the balance for furniture and fixtures for the store. g. Placed a grand opening advertisement in the local paper for $400 cash; the ad ran in the current month. h. Made sales on Valentine's Day totaling $3,700; $2,670 was in cash and the rest on accounts receivable. 1. The cost of the candy sold in (h) above was $1,900. (Reminder. Used inventory is an expense called Cost of Goods Sold.) j. Made a $590 payment on accounts payable. k. Incurred and paid employee wages of $1,400. 1. Collected accounts receivable of $110 from customers. m. Made a repair to one of the display cases for $100 cash. n. Made cash sales of $2,900 during the rest of the month. o. The cost of the candy sold in (n) above was $1,710. Required: 1 and 2. Record in the T-accounts the effects of each transaction for Kaylee's Sweets in February, referencing each transaction in the accounts with the transaction letter. 3. Prepare an unadjusted income statement at the end of the first month of operations ended February 28. 5. After three years in business, you are being evaluated for a promotion. One measure is how effectively you managed the sales and expenses of the business. The following data are available: Total assets Total liabilities Total stockholders' equity Net sales revenue Net income 2024 2025. 2023 $85,000 $53,000 $36,500 46,000 21,000 21,000 - 39,000 32,000 15,500 95,000 80,000 53,000 21,400 11,500 4,200 expenses of the business. The following data art Total assets Total liabilities: Total stockholders' equity Net sales revenue Net income 2025. $85,000 $53,000 $36,500 46,000 21,000 21,000 39,000 32,000 15,500 53,000 95,000 80,000 21,400 11,500 4,200 2024 2023 "At the end of 2025, Kaylee decided to open a second store, requiring loans and inventory purchases prior to the store's opening in early 2026. 5-a. Calculate the net profit margin ratio for each year. 5-b. Do you think you should be promoted? Complete this question by entering your answers in the tabs below. and 2 Required 3 Required Sa Required 5b Record in the T-accounts the effects of each transaction for Kaylee's Sweets in February, referencing each transaction in the account letter. Cash Accounts Receivable Debit Credit Debit Credit Beginning balance Beginning balance (e) (e) (h) (k) (m) 27,900 Ending balance 27,900 Debit Beginning balance + Ending balance 0 Supplies Inventory Credit Debit Credit Beginning balance Ending balance 0 Ending balance Debit Beginning balance Ending balance Debit Beginning balance Ending balance Prepaid Expenses Furniture and Fixtures 0 Credit Equipment Debit Credit Beginning balance Ending balance 0 Accounts Payable Credit Debit Credit Beginning balance Ending balance 0 Notes Payable Common Stock Debit Credit. Debit Credit Beginning balance - Beginning balance Ending balance Ending balance Sales Revenue Debit Beginning balance Additional Paid-in Capital Ending balance Debit Beginning balance Ending balance Debit Beginning balance Cost of Goods Sold Credit Sales Revenue Debit Credit Beginning balance 0 Ending balance Credit Advertising Expense: Credit 0 Repairs Expense Debit Credit Beginning balance. Ending balance 0 Wages Expense Debit Credit Beginning balance Ending balance Ending balance 0 Required 1 and 2 Required 3> Maps Homework Problems Saved Complete this question by entering your answers in the tabs below. Required 1 and 21 Required 3 Required Se Required 5b Prepare an unadjusted income statement at the end of the first month of operati KAYLEE'S SWEETS Income Statement (unadjusted) ** F1 * 80 F2 #3 72 F3 0 hapter 3 Homework Problems i Sav 3 68 pints eBook Ask Total liabilities Total stockholders' equity Net sales revenue Net income 46,000 21,000 21,000 39,000 32,000 15,500 95,000 80,000 53,000 21,400 11,500 4,200 *At the end of 2025, Kaylee decided to open a second store, requiring lo early 2026. 5-a. Calculate the net profit margin ratio for each year. 5-b. Do you think you should be promoted? Complete this question by entering your answers in the tabs belov Print References Required 1 and 2 Required 3 Required 5a Required 5b Calculate the net profit margin ratio for each year. Note: Round your answers to 1 decimal place. Net Profit Margin Ratio 2025 % 2024 % 2023 % < Required 3 Require