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 $7,600. b. The firm borrowed $5,400 from the bank; a short-term note was signed. c. Display cases and other store equipment costing $1,700 were purchased for cash. The original list price of the equipment was $1,900, 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 $15,200 was purchased; $9,000 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 $3,300 was sold for $7,000 cash. g. A newspaper ad costing $150 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 $4,100 was purchased; cash of $1,250 was paid, and the balance is due in 30 days. i. In the last three weeks of the first month, sales totaled $14,250, of which $9,500 was sold on account. The cost of the goods sold totaled $9,000. 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 $3,650 from the sales on account recorded in transaction i. 1. The firm paid a total of $4,400 of the amount owed to suppliers from transaction e. Required: Prepare the journal entries for each of these transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

Name: The transactions relating to the formation of Blue Company Stores Inc
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: 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 $7,600.b. The firm borrowed $5,400 from the bank; a short-term n