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.

1. Received four shareholders' contributions totaling $29,500 cash to form the corporation; issued 700 shares of $0.10 par value common stock.

2. Paid three months' rent for the store at $1,860 per month (recorded as prepaid expenses).

3. Purchased and received candy for $6,000 on account, due in 60 days.

4. Purchased supplies for $1,330 cash.

5. Negotiated and signed a two-year $15,000 loan at the bank, receiving cash at the time.

6. Used the money from (e) to purchase a computer for $2,750 (for recordkeeping and inventory tracking); used the balance for furniture and fixtures for the store.

7. Placed a grand opening advertisement in the local paper for $420 cash; the ad ran in the current month.

8. Made sales on Valentine's Day totaling $3,100; $2,635 was in cash and the rest on accounts receivable. The cost of the candy sold was $1,300.

9. Made a $600 payment on accounts payable.

10. Incurred and paid employee wages of $1,200.

11. Collected accounts receivable of $165 from customers.

12. Made a repair to one of the display cases for $105 cash.

13. Made cash sales of $2,500 during the rest of the month. The cost of the candy sold was $1,310.

Required: 1 & 2. Record in the T-accounts the effects of each transaction for Kaylee's Sweets in February, referencing ea accounts with the transaction letter. Cash Accounts Receivable Beg. bal. Beg. bal. End. bal. 0 End. bal. Supplies Inventory Beg. bal. Beg. bal. End. bal. End. bal. Prepaid Expenses Equipment Beg. bal. Beg. bal. End. bal. 0 End. bal. 0 Furniture and Fixtures Accounts Payable Beg. bal. Beg. bal. End. bal. 0 End. bal. 0 Notes Payable Common Stock Beg. bal. Beg. bal. End. bal. 0 End. bal. 0 Additional Paid-in Capital Sales Revenue Beg. bal. Beg. bal. End. bal. 0 End. bal. 0 Cost of Goods Sold Repair Expense Beg. bal. Beg. bal. End. bal. 0 End. bal. 0 Advertising Expense Wage Expense Beg. bal. Beg. bal. End. bal. 0 End. bal