The firm was organized and the stockholders invested cash of $8,600.

The firm borrowed $5,400 from the bank; a short-term note was signed.

Display cases and other store equipment costing $1,750 were purchased for cash. The original list price of the equipment was $1,990, but a discount was received because the seller was having a sale.

A store location was rented, and $1,350 was paid for the first month's rent.

Inventory of $16,000 was purchased; $8,100 cash was paid to the suppliers, and the balance will be paid within 45 days.

During the first week of operations, merchandise that had cost $4,500 was sold for $6,700 cash.

A newspaper ad costing $100 was arranged for; it ran during the second week of the store's operations. The ad will be paid for in the next month.

Additional inventory costing $4,100 was purchased; cash of $1,300 was paid, and the balance is due in 30 days.

In the last three weeks of the first month, sales totaled $14,000, of which $9,500 was sold on account. The cost of the goods sold totaled $9,100.

Employee wages for the month totaled $1,800; these will be paid during the first week of the next month.

The firm collected a total of $3,550 from the sales on account recorded in transaction i.

The firm paid a total of $4,400 of the amount owed to suppliers from transaction e.

BLUE CO. STORES, INC Income Statement Sales BLUE CO. STORES, INC Balance Sheet Assets: Total current assets Total assets 0 Liabilities: Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity 0 0