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The transactions relating to the formation of Blue Company Stores Incorporated, and its first month of operations follow. a . The firm was organized and
The transactions relating to the formation of Blue Company Stores Incorporated, and its first month of operations follow.
a The firm was organized and the stockholders invested cash of $
b The firm borrowed $ from the bank; a shortterm note was signed.
c Display cases and other store equipment costing $ were purchased for cash. The original list price of the equipment was $ but a discount was received because the seller was having a sale.
d A store location was rented, and $ was paid for the first month's rent.
e Inventory of $ was purchased; $ cash was paid to the suppliers, and the balance will be paid within days.
f During the first week of operations, merchandise that had cost $ was sold for $ cash.
g A newspaper ad costing $ 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 $ was purchased; cash of $ was paid, and the balance is due in days.
i In the last three weeks of the first month, sales totaled $ of which $ was sold on account. The cost of the goods sold totaled $
j Employee wages for the month totaled $; these will be paid during the first week of the next month.
k The firm collected a total of $ from the sales on account recorded in transaction
I. The firm paid a total of $ of the amount owed to suppliers from transaction
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 recording transactions a through I, prepare an income statement for Blue Company Stores Incorporated for the monthc. After recording transactions a through I, prepare an income statement for Blue Company Stores Incorporated for the month presented.
After recording transactions a through I, prepare a balance sheet at the end of the month.
Complete this question by entering your answers in the tabs below.
Required B
Required C
Required C
Record each transaction in the appropriate columns. Indicate the financial statement effect.
Note: Enter decreases with a minus sign to indicate a negative financial statement effect.
tableTransactionASSETS,LIABILITIES,STOCKHOLDERS' EQUITYCashtableAccountsReceivabletable MerchandiseInventoryEquipment,tableNotesPayabletableAccountsPayabletablePaidinCapitaltableRetainedEarningsRevenue,Expen fbbbddeaafcdabed
tableaPbITT,,,I,,cESindI,,are,,,,,eTPTf:
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