**Formation and Initial Operations of Blue Company Stores Incorporated****Transactions:**1. **Organization and Stock Issuance:** - The firm was organized, and stockholders invested $7,400 in cash.2. **Bank Financing:** - Secured a $5,900 loan from the bank; a short-term note was signed.3. **Equipment Purchase:** - Display cases and other store equipment costing $1,600 were acquired for cash. The original list price was $1,930, indicating a discount due to a sale.4. **Rental Payment:** - $1,500 was paid for the first month's rent of the store location.5. **Inventory Purchase:** - $14,700 worth of inventory was purchased; $8,500 in cash was paid, with the remaining balance due within 60 days.6. **Sales Operations:** - During the first week, merchandise costing $3,100 was sold for $5,100 in cash.7. **Advertising Expense:** - A $100 cost for newspaper advertising was incurred; payment will be made in the following month.8. **Additional Inventory:** - More inventory was purchased for $4,350; a $1,100 cash payment was made, with the remainder due in 30 days.9. **Sales Revenue:** - In the last three weeks, total sales were $13,250, with $9,700 sold on account. The cost of goods sold totaled $8,800.10. **Wage Expense:** - Employee wages for the month totaled $1,900, payable the next month.11. **Customer Payment:** - Collected $3,550 from customers who purchased on account.12. **Supplier Payment:** - Paid $4,100 to a supplier from a previous transaction.**Required Actions:**a. **Transaction Recording:** - Record each transaction in the appropriate columns, indicating the financial statement effects.b. **Financial Statements:** - Calculate total assets, liabilities, and stockholders' equity at month-end, and determine the net income for the month.c. **Financial Statement Preparation:** 1. Prepare an income statement for Blue Company Stores Incorporated. 2. Prepare a balance sheet at the end of the month.**Table:**- The table provided features columns for assets (such as

Name: **Formation and Initial Operations of Blue Company Stores Incorporate
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: **Formation and Initial Operations of Blue Company Stores Incorporated****Transactions:**1. **Organization and Stock Issuance:** - The firm was organized, and stockholders invested $7,400 in cash.2. **Bank Financing:** - Secured a $5,900 loan fr