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. ces 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
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. ces 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
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter2: Asset And Liability Valuation And Income Recognition
Section: Chapter Questions
Problem 20PC: Analyzing Transactions. Using the analytical framework, indicate the effect of the following related...
Related questions
Question
Hello, I need help please
Transcribed Image 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 >
Transcribed Image Text:View transaction list
Journal entry worksheet
1
2
3
4
5
8.
14
The firm was organized and the stockholders invested cash of $8,400.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
a.
Record entry
Ciear entry
View general journal
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 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning