Exercise 4-5 (Algo) Record transactions and calculate financial statement amounts LO 2, 6, 7 The transactions relating to the formation of Blue Co. Stores Inc., and its first month of operations follow. The firm was organized and the stockholders invested cash of $8,900. The firm borrowed $4,800 from the bank; a short-term note was signed. Display cases and other store equipment costing $1,650 were purchased for cash. The original list price of the equipment was $1,940, but a discount was received because the seller was having a sale. A store location was rented, and $1,500 was paid for the first month's rent. Inventory of $14,400 was purchased; $8,500 cash was paid to the suppliers, and the balance will be paid within 60 days. During the first week of operations, merchandise that had cost $4,300 was sold for $6,200 cash. A newspaper ad costing $120 was arranged for; it ran during the second week of the store's operations. The ad will be paid for in the next month. Additional inventory costing $4,150 was purchased; cash of $1,300 was paid, and the balance is due in 30 days. In the last three weeks of the first month, sales totaled $13,250, of which $9,300 was sold on account. The cost of the goods sold totaled $8,400. Employee wages for the month totaled $1,900; these will be paid during the first week of the next month. The firm collected a total of $3,350 from the sales on account recorded in transaction i. The firm paid a total of $4,600 of the amount owed to suppliers from transaction e. Required: Record each transaction in the appropriate columns. Indicate the financial statement effect. Calculate the total assets, liabilities, and stockholders' equity at the end of the month and calculate the amount of net income for the month. After completing parts a through l, prepare an income statement for Blue Co. Stores Inc. for the month presented and a balance sheet at the end of the month.

Blossom Company has recorded the following items in its financial records. Cash in bank: Checking account $50,000 Money market fund 36,000 Payroll account 26,000 Certificate of deposit (matures in 2 months) 28,000 Certificate of deposit (matures in 12 months) 33,000 Total cash in bank $173,000 Cash in plant expansion fund 143,000 Cash on hand 34,000 Highly liquid investments Petty cash 53,000 2,600 Receivables from customers 122,000 Stock investments 84,000 U.S Treasury bills 43,000 The highly liquid investments (Commercial Paper) had maturities of 3 months or less when they were purchased. The stock investments will be sold in the next 6 to 12 months. The plant expansion project will begin in 3 years. (a) What amount should Blossom report as "Cash and cash equivalents" on its balance sheet? SUPPORT

Problem 2 Meyda Company's bank statement for the month of June showed a balance per bank of €10,336. The company's Cash account in the general ledger had a balance of €9,788 at April 30. Other information is as follows: (1) Cash receipts for June 30 recorded on the company's books were €9,000 but this amount does not appear on the bank statement. (2) The bank statement shows a debit memorandum for €70 for check printing charges. (3) Check No. 129 payable to Atture Company was recorded in the cash payments journal and cleared the bank for €235. A review of the accounts payable subsidiary ledger shows a €72 credit balance in the account of Atture Company and that the payment to them should have been for €307. (4) The total amount of checks still outstanding at June 30 amounted to €7,800. (5) Check No. 151 was correctly written and paid by the bank for €549. The cash payment journal reflects an entry for Check No. 151 as a debit to Accounts Payable and a credit to Cash in Bank for €599.…

8:17 1 customer in payment of the customer's account of \ $2.700. What is the up-to-date ending Cash balance? 4. a bank reconciliation included a deposit in transit of $720, the company's journal entry for this reconciling item would include 5. Urban Bloom, Incorporated's books show an ending cash balance of $13,500 before preparing the bank reconciliationGiven the bank reconciliation shows outstanding checks of \$3700 deposits in transit of \$2,700, NSF check of $ 170, and interest earned on the bank account of $80, the company's up-to-date ending cash balance equals: 6. Egrane, Incorporated's monthly bank statement showed the ending balance of cash of $19,200. The bank reconciliation for the period showed an adjustment for a deposit in transit of $1,850, outstanding checks of $2,700, an NSF check of $1,400, bank service charges of $65 and the EFT from a customer in payment of the customer's account of $2,200. What was the cash balance on the Egrane's books (before the adjustments for…