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 on February 1. The shop 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. a. Received four shareholders' contributions totaling $27,800 cash to form the corporation; Issued 400 shares of $0.10 par value common stock. b. Paid three months' rent for the store at $1,860 per month (recorded as prepaid expenses). c. Purchased and received candy for $6,300 on account, due in 60 days. d. Purchased supplies for $1,330 cash. e. Negotiated and signed a two-year $20,000 loan at the bank, receiving cash at the time. f. Used the money from (e) to purchase a computer for $3,100 (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 $460 cash; the ad ran in the current month. h. Made sales on Valentine's Day totaling $3,300: $2,650 was in cash and the rest on accounts receivable. The cost of the candy sold was $1,500. i. Made a $630 payment on accounts payable. J. Incurred and paid employee wages of $1,500. k. Collected accounts receivable of $115 from customers. I. Made a repair to one of the display cases for $110 cash. m. Made cash sales of $2,600 during the rest of the month. The cost of the candy sold was $1,410.

Answer 1

Kaylee's Sweets Cash Beg Bal. a 115 b. d. Accounts Receivable k. 650 1860 1330 20000 Beg Bal. h. 27800 20000 e. f. h. 460 2650 115 k. 630 End Bal. 535 m. 2600 1500 650 650 i. j. 1. End Bal. 650 110 27275 53165 53165 Supplies Inventory Beg Bal. d. Beg Bal. h. 1500 1410 1330 C. 6300 m. End Bal. 1330 End Bal. 3390 6300 1330 1330 6300 Prepaid Expenses Equipment Beg Bal. b. Beg Bal. f. 1860 3100 End Bal. 1860 End Bal. 3100 3100 1860 1860 3100 Furniture and Fixtures i. Beg Bal. f. Accounts Payable 630 Beg Bal. C. 16900 6300 End Bal. 16900 End Bal. 5670 63001 16900 16900 6300 Common Stock Beg Bal. Notes Payable Beg Bal. e. 20000 20000 20000 a 40 End Bal. End Bal. 40 20000 40 40 Additional Paid in Capital Beg Bal. 27760 Sales Revenue h. 3300 a m. 2600 End Bal. 27760 End Bal. 5900 27760 27760 5900 5900 Cost of goods sold 1500 Repair Expense 110 h. I. m. 1410 End Bal. End Bal. 110 2910 2910 2910 110 110 Advertising Expense 460 Wage Expense 1500 j. End Bal End Bal. 460 End Bal. 1500 1500 460 460 1500