The transactions relating to the formation of Blue Company Stores Incorporated, and its first month of operations follow. The firm was organized and the stockholders invested cash of $7,700. The firm borrowed $4,200 from the bank; a short-term note was signed. Display cases and other store equipment costing $1,550 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. A store location was rented,