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 $8,400. b. The firm...


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The transactions relating to the formation of Blue Co. Stores Inc., and its first month of operations follow.<br>a. The firm was organized and the stockholders invested cash of $8,400.<br>b. The firm borrowed $4,300 from the bank; a short-term note was signed.<br>c. Display cases and other store equipment costing $1,750 were purchased for cash. The original list price of the equipment was<br>$1,910, but a discount was received because the seller was having a sale.<br>d. A store location was rented, and $1,400 was paid for the first month's rent.<br>e. Inventory of $15,600 was purchased; $8,200 cash was paid to the suppliers, and the balance will be paid within 45 days.<br>f. During the first week of operations, merchandise that had cost $3,900 was sold for $6,700 cash.<br>g. A newspaper ad costing $140 was arranged for; it ran during the second week of the store's operations. The ad will be paid for in<br>the next month.<br>h. 'Additional inventory costing $4,350 was purchased; cash of $1,400 was paid, and the balance is due int30 days.<br>i. In the last three weeks of the first month, sales totaled $13,750, of which $9,700 was sold on account. The cost of the goods sold<br>totaled $8,100.<br>j. Employee wages for the month totaled $1,900; these will be paid during the first week of the next month.<br>k. The firm collected a total of $3,600 from the sales on account recorded in transaction i.<br>I. The firm paid a total of $4,200 of the amount owed to suppliers from transaction e.<br>nt<br>ences<br>Required:<br>Prepare the journal entries for each of these transactions. (If no entry is required for a transaction/event, select
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Extracted text: 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 $8,400. b. The firm borrowed $4,300 from the bank; a short-term note was signed. c. Display cases and other store equipment costing $1,750 were purchased for cash. The original list price of the equipment was $1,910, 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 $15,600 was purchased; $8,200 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 $6,700 cash. g. A newspaper ad costing $140 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 $4,350 was purchased; cash of $1,400 was paid, and the balance is due int30 days. i. In the last three weeks of the first month, sales totaled $13,750, of which $9,700 was sold on account. The cost of the goods sold totaled $8,100. 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 $3,600 from the sales on account recorded in transaction i. I. The firm paid a total of $4,200 of the amount owed to suppliers from transaction e. nt ences Required: Prepare the journal entries for each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Graw Hill Education < prev="" 1="" of="" 3="" next="">
View transaction list<br>Journal entry worksheet<br>く<br>1<br>3<br>6.<br>7 8<br>14<br>A store location was rented, and $1,400 was paid for the first month's rent.<br>Note: Enter debits before credits.<br>Transaction<br>General Journal<br>Debit<br>Credit<br>d.<br>Record entry<br>Ciear entry<br>View general journal<br>LO<br>

Extracted text: View transaction list Journal entry worksheet く 1 3 6. 7 8 14 A store location was rented, and $1,400 was paid for the first month's rent. Note: Enter debits before credits. Transaction General Journal Debit Credit d. Record entry Ciear entry View general journal LO
Jun 11, 2022
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