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 $7,400. b. The firm borrowed $4,300 from the bank, a short-term note was signed. c. Display cases and other store equipment costing $1750 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. d. A store location was rented, and $1,450 was paid for the first month's rent. e. Inventory of $14,200 was purchased: $10,000 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 $3,900 was sold for $6,400 cash. g. 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. h. Additional inventory costing $4,050 was purchased; cash of $1,200 was paid, and the balance is due in 30 days. I. In the last three weeks of the first month, sales totaled $13,750, of which $10,000 was sold on account. The cost of the goods sold totaled $8,300 J. 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 $3,500 from the sales on account recorded in transaction i. 1. The firm paid a total of $4,800 of the amount owed to suppliers from transaction e Required: a. Record each transaction in the appropriate columns. Indicate the financial statement effect. 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 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. Expenses Required A Required Required C Recuired ca Record each transaction in the appropriate columns. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) ASSETS LIABILITIES STOCKHOLDERS EQUITY Merchandise ) Cast Receivable. Inventary Equipment - Payable Payable. Capital EarringeNevene 7,400 7,400 4300 1750 d 11.4501 50.000 6.490 3. 00 11.2001 2.850 2,750 000 13.300) 19.95 1 1,900 3.500 13.500 1.500 8.150.500. 8.00-1750-4,300 4.250 7.400 20150 1/60 1 3. 100 13.300) D 15.30 Required A Required Required C1 Required C2 After completing parts a through I, prepare an income statement for Blue Co. Stores Inc. for the month presented. (Enter decreases with a minus sign to indicate a negative income statement effect.) BLUE CO. STORES INC. Income Statement Effect Sales $ S Cost of goods sold Gross profit S Rent expense Advertising expense Wages expense Gross profit 2 Net Income 20,150 12.200? 4,500? 1.450 ? 100 ? 1.900 ? QUESTION: 1. What is the computation/answer for cost of goods sold, gross profit, rent expense, advertising expense, wages expense, and net income? 2. What should be the answer instead of gross profit and its corresponding value? Thank you