Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance For Non-Finance Executives

Authors: Anurag Singal

1st Edition

1952538327, 9781952538322

More Books

Students also viewed these Accounting questions

Question

Explain the principles of delegation

Answered: 1 week ago

Question

State the importance of motivation

Answered: 1 week ago

Question

Discuss the various steps involved in the process of planning

Answered: 1 week ago

Question

What are the challenges associated with tunneling in urban areas?

Answered: 1 week ago

Question

What are the main differences between rigid and flexible pavements?

Answered: 1 week ago