The transactions relating to the formation of Blue Co. Stores, Inc., and its first month of operations follow. a. The firm was organized and the stockholders invested cash of $7,300. b. The firm borrowed $5,900 from the bank; a short-term note was signed. c. Display cases and other store equipment costing $1,650 were purchased for cash. The original list price of the equipment was $1,940, but a discount was received because the seller was having a sale. d. A store location was rented, and $1,500 was paid for the first month's rent. e. Inventory of $14,400 was purchased; $8,500 cash was paid to the suppliers, and the balance will be paid within 45 days. f. During the first week of operations, merchandise that had cost S3,100 was sold for $5,800 cash. g. A newspaper ad costing $110 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 $4,400 was purchased; cash of $1,200 was paid, and the balance is due in 30 days. L In the last three weeks of the first month, sales totaled $14,000, of which $9,700 was sold on account. The cost of the goods sold totaled $9,500 Employee wages for the month totaled $1,900; these will be paid during the first week of the next month k. The firm collected a total of $3,400 from the sales on account recorded in transaction i L The firm paid a total of $4,700 of the amount owed to suppliers from transaction e. Required: a. Record each transaction in the appropriate columns. (If an transaction/Adjustment are not affecting the balance sheet category or income statement, leave the cells blank. Enter decreases to account balances as a negative.) ASSETS LIABILITIES STOCKHOLDERS EQUITY Transaction Accounts Merchandise NotesAccounts Paid-in Retained Cash RecelvableInventory EquipmentPayable +Payable Capital+Earnings+Revenue- Expenses 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 Assets Liabilities Stockholders' Equity Net Income c. After completing parts a through I, prepare an income statement for Blue Co. Stores, Inc., for the month presented and a balance sheet at the end of the month BLUE CO. STORES, INC. Income Statement BLUE CO. STORES, INC Balance Sheet Assets: Total current asset:s 0 Total assets 0 Liabilities: Total liabilities 0 Stockholders' Equity: Total stockholders' equity 0 Total liabilities and stockholders' equity 0