Required information [The following information applies to the questions displayed below.] Kaylee James, a connoisseur of fine chocolate, opened Kaylee's Sweets in Collegetown specializes in a selection of gourmet chocolate candies and a line of gourmet ice cream. You have been hired as manager. Your duties include maintaining the store's financial records. The following transactions occurred in February, the first month of operations. on February 1. The shop a. Received four shareholders' contributions totaling $29,400 cash to form the corporation; issued 700 shares of $0.10 par value common stock b. Paid three months' rent for the store at $1,760 per month (recorded as prepaid expenses). c. Purchased and received candy for $5,800 on account, due in 60 days. d. Purchased supplies for $1,430 cash e. Negotiated and signed a two-year $14,000 loan at the bank, receiving cash at the time. f. Used the money from (e) to purchase a computer for $3,400 (for recordkeeping and inventory tracking); used the balance for furniture and fixtures for the store. g. Placed a grand opening advertisement in the local paper for $410 cash; the ad ran in the current month h. Made sales on Valentine's Day totaling $4,000; $2,645 was in cash and the rest on accounts receivable. The cost of the candy sold was $2,200. i. Made a $580 payment on accounts payable. j. Incurred and paid employee wages of $2,000 k. Collected accounts receivable of $150 from customers. I. Made a repair to one of the display cases for $125 cash m. Made cash sales of $3,200 during the rest of the month. The cost of the candy sold was $2,010. 3. Prepare an unadjusted income statement at the end of the first month of operations ended February 28 KAYLEE'S SWEETS Income Statement (unadjusted) For the Month Ended February 28 Revenues Sales revenue Sales revenue Expenses Cost of goods sold Advertising expense Wage expense Repair expense Total expenses Net income
Required information [The following information applies to the questions displayed below.] Kaylee James, a connoisseur of fine chocolate, opened Kaylee's Sweets in Collegetown specializes in a selection of gourmet chocolate candies and a line of gourmet ice cream. You have been hired as manager. Your duties include maintaining the store's financial records. The following transactions occurred in February, the first month of operations. on February 1. The shop a. Received four shareholders' contributions totaling $29,400 cash to form the corporation; issued 700 shares of $0.10 par value common stock b. Paid three months' rent for the store at $1,760 per month (recorded as prepaid expenses). c. Purchased and received candy for $5,800 on account, due in 60 days. d. Purchased supplies for $1,430 cash e. Negotiated and signed a two-year $14,000 loan at the bank, receiving cash at the time. f. Used the money from (e) to purchase a computer for $3,400 (for recordkeeping and inventory tracking); used the balance for furniture and fixtures for the store. g. Placed a grand opening advertisement in the local paper for $410 cash; the ad ran in the current month h. Made sales on Valentine's Day totaling $4,000; $2,645 was in cash and the rest on accounts receivable. The cost of the candy sold was $2,200. i. Made a $580 payment on accounts payable. j. Incurred and paid employee wages of $2,000 k. Collected accounts receivable of $150 from customers. I. Made a repair to one of the display cases for $125 cash m. Made cash sales of $3,200 during the rest of the month. The cost of the candy sold was $2,010. 3. Prepare an unadjusted income statement at the end of the first month of operations ended February 28 KAYLEE'S SWEETS Income Statement (unadjusted) For the Month Ended February 28 Revenues Sales revenue Sales revenue Expenses Cost of goods sold Advertising expense Wage expense Repair expense Total expenses Net income
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter2: T Accounts, Debits And Credits, Trial Balance, And Financial Statements
Section: Chapter Questions
Problem 1PB: During February of this year, H. Rose established Rose Shoe Hospital. The following asset,...
Related questions
Question
![Required information
[The following information applies to the questions displayed below.]
Kaylee James, a connoisseur of fine chocolate, opened Kaylee's Sweets in Collegetown
specializes in a selection of gourmet chocolate candies and a line of gourmet ice cream. You have been hired as manager.
Your duties include maintaining the store's financial records. The following transactions occurred in February, the first
month of operations.
on February 1. The shop
a. Received four shareholders' contributions totaling $29,400 cash to form the corporation; issued 700 shares of $0.10
par value common stock
b. Paid three months' rent for the store at $1,760 per month (recorded as prepaid expenses).
c. Purchased and received candy for $5,800 on account, due in 60 days.
d. Purchased supplies for $1,430 cash
e. Negotiated and signed a two-year $14,000 loan at the bank, receiving cash at the time.
f. Used the money from (e) to purchase a computer for $3,400 (for recordkeeping and inventory tracking); used the
balance for furniture and fixtures for the store.
g. Placed a grand opening advertisement in the local paper for $410 cash; the ad ran in the current month
h. Made sales on Valentine's Day totaling $4,000; $2,645 was in cash and the rest on accounts receivable. The cost of
the candy sold was $2,200.
i. Made a $580 payment on accounts payable.
j. Incurred and paid employee wages of $2,000
k. Collected accounts receivable of $150 from customers.
I. Made a repair to one of the display cases for $125 cash
m. Made cash sales of $3,200 during the rest of the month. The cost of the candy sold was $2,010.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0b424a93-0b2e-44d0-8d13-43076b7db66c%2F49d9ecd9-1752-404c-bf61-821424641a23%2F5fcsf7.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Kaylee James, a connoisseur of fine chocolate, opened Kaylee's Sweets in Collegetown
specializes in a selection of gourmet chocolate candies and a line of gourmet ice cream. You have been hired as manager.
Your duties include maintaining the store's financial records. The following transactions occurred in February, the first
month of operations.
on February 1. The shop
a. Received four shareholders' contributions totaling $29,400 cash to form the corporation; issued 700 shares of $0.10
par value common stock
b. Paid three months' rent for the store at $1,760 per month (recorded as prepaid expenses).
c. Purchased and received candy for $5,800 on account, due in 60 days.
d. Purchased supplies for $1,430 cash
e. Negotiated and signed a two-year $14,000 loan at the bank, receiving cash at the time.
f. Used the money from (e) to purchase a computer for $3,400 (for recordkeeping and inventory tracking); used the
balance for furniture and fixtures for the store.
g. Placed a grand opening advertisement in the local paper for $410 cash; the ad ran in the current month
h. Made sales on Valentine's Day totaling $4,000; $2,645 was in cash and the rest on accounts receivable. The cost of
the candy sold was $2,200.
i. Made a $580 payment on accounts payable.
j. Incurred and paid employee wages of $2,000
k. Collected accounts receivable of $150 from customers.
I. Made a repair to one of the display cases for $125 cash
m. Made cash sales of $3,200 during the rest of the month. The cost of the candy sold was $2,010.
Transcribed Image Text:3. Prepare an unadjusted income statement at the end of the first month of operations ended February 28
KAYLEE'S SWEETS
Income Statement (unadjusted)
For the Month Ended February 28
Revenues
Sales revenue
Sales revenue
Expenses
Cost of goods sold
Advertising expense
Wage expense
Repair expense
Total expenses
Net income
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning