The transactions relating to the formation of Blue Co. Stores Inc., and its first month of...

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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 $8,000. b. The firm borrowed $4,600 from the bank; a short-term note was signed. c. Display cases and other store equipment costing $1,500 were purchased for cash. The original list price of the equipment was $1,900, but a discount was received because the seller was having a sale. d. A store location was rented, and $1,250 was paid for the first month's rent. e. Inventory of $14,800 was purchased; $9,500 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 $4,300 was sold for $5,100 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 $4,150 was purchased; cash of $1,100 was paid, and the balance is due in 30 days. i. In the last three weeks of the first month, sales totaled $14,000, of which $9,400 was sold on account. The cost of the goods sold totaled $9,300. J. Employee wages for the month totaled $2,000; these will be paid during the first week of the next month. k. The firm collected a total of $3,350 from the sales on account recorded in transaction i 1. The firm paid a total of $4,250 of the amount owed to suppliers from transaction e. Required: 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 $8,000. b. The firm borrowed $4,600 from the bank; a short-term note was signed. c. Display cases and other store equipment costing $1,500 were purchased for cash. The original list price of the equipment was $1,900, but a discount was received because the seller was having a sale. d. A store location was rented, and $1,250 was paid for the first month's rent. e. Inventory of $14,800 was purchased; $9,500 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 $4,300 was sold for $5,100 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 $4,150 was purchased; cash of $1,100 was paid, and the balance is due in 30 days. i. In the last three weeks of the first month, sales totaled $14,000, of which $9,400 was sold on account. The cost of the goods sold totaled $9,300. J. Employee wages for the month totaled $2,000; these will be paid during the first week of the next month. k. The firm collected a total of $3,350 from the sales on account recorded in transaction i 1. The firm paid a total of $4,250 of the amount owed to suppliers from transaction e. Required: