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 $8,500. b. The firm borrowed $4,100 from the bank, a short-term note was signed. c. Display cases and other store equipment costing $1,550 were purchased for cash. The original list price of the equipment was $1,920, but a discount was received because the seller was having a sale. d. A store location was rented, and $1,400 was paid for the first month's rent. e. Inventory of $14,400 was purchased; $8,600 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 $4,200 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 $4,200 was purchased; cash of $1,300 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 $9,900 was sold on account. The cost of the goods sold totaled $8,400. 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 $3,750 from the sales on account recorded in transaction i. I. The firm paid a total of $4,500 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.) Transaction Cash ASSETS Accounts Merchandise + Receivable + Inventory LIABILITIES + STOCKHOLDERS' EQUITY Notes Accounts Paid-in Retained + Equipment = Payable + Payable + Capital + Earnings + Revenue - Expenses + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + +