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

1. The firm was organized and the stockholders invested cash of $8,000.
2. The firm borrowed $4,100 from the bank; a short-term note was signed.
3. Display cases and other store equipment costing $1,700 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.
4. A store location was rented, and $1,250 was paid for the first month's rent.
5. Inventory of $14,600 was purchased; $9,500 cash was paid to the suppliers, and the balance will be paid within 45 days.
6. During the first week of operations, merchandise that had cost $4,300 was sold for $6,300 cash.
7. A newspaper ad costing $120 was arranged for; it ran during the second week of the store's operations. The ad will be paid for in the next month.
8. Additional inventory costing $4,200 was purchased; cash of $1,350 was paid, and the balance is due in 30 days.
9. In the last three weeks of the first month, sales totaled $14,000, of which $10,000 was sold on account. The cost of the goods sold totaled $9,000.
10. Employee wages for the month totaled $1,900; these will be paid during the first week of the next month.
11. The firm collected a total of $3,700 from the sales on account recorded in transaction i.
12. The firm paid a total of $4,250 of the amount owed to suppliers from transaction e.