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    Kaylee James A Connoisseur of Fine Chocolate Opened Kaylee S Sweets

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    trilocksp Singh
    Kaylee James opened Kaylee's Sweets, a gourmet chocolate and ice cream shop, in February 2014. The shop received $30,200 in shareholder contributions in exchange for issuing 400 shares of stock. Additional startup funds were used to pay rent, purchase inventory and supplies, and acquire equipment. In its first month of operations, the shop had sales of $5,700 and costs of $3,200, resulting in a net income of $2,500. The manager must maintain accurate financial records to help the business succeed.

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    Kaylee James A Connoisseur of Fine Chocolate Opened Kaylee S Sweets

    Uploaded by

    trilocksp Singh
    61 views1 page
    Kaylee James opened Kaylee's Sweets, a gourmet chocolate and ice cream shop, in February 2014. The shop received $30,200 in shareholder contributions in exchange for issuing 400 shares of stock. Additional startup funds were used to pay rent, purchase inventory and supplies, and acquire equipment. In its first month of operations, the shop had sales of $5,700 and costs of $3,200, resulting in a net income of $2,500. The manager must maintain accurate financial records to help the business succeed.

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    Kaylee James opened Kaylee's Sweets, a gourmet chocolate and ice cream shop, in February 2014. The shop received $30,200 in shareholder contributions in exchange for issuing 400 shares of stock. Additional startup funds were used to pay rent, purchase inventory and supplies, and acquire equipment. In its first month of operations, the shop had sales of $5,700 and costs of $3,200, resulting in a net income of $2,500. The manager must maintain accurate financial records to help the business succeed.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    61 views1 page

    Kaylee James A Connoisseur of Fine Chocolate Opened Kaylee S Sweets

    Uploaded by

    trilocksp Singh
    Kaylee James opened Kaylee's Sweets, a gourmet chocolate and ice cream shop, in February 2014. The shop received $30,200 in shareholder contributions in exchange for issuing 400 shares of stock. Additional startup funds were used to pay rent, purchase inventory and supplies, and acquire equipment. In its first month of operations, the shop had sales of $5,700 and costs of $3,200, resulting in a net income of $2,500. The manager must maintain accurate financial records to help the business succeed.

    Copyright:

    © All Rights Reserved
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    Kaylee James a connoisseur of fine chocolate opened

    Kaylee s Sweets
    Kaylee James a connoisseur of fine chocolate opened Kaylee s Sweets

    Kaylee James, a connoisseur of fine chocolate, opened Kaylee's Sweets in Collegetown on


    February 1, 2014. 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
    stores financial records. The following transactions occurred in February 2014, the first month of
    operations.
    a. Received four shareholders' contributions totaling $30,200 cash to form the corporation.
    issued 400 shares of 5.10 par value common stock
    b. Paid three months' rent for the store at 51,750 per month (recorded as prepaid expenses). c.
    Purchased and received candy for $6,000 on account, due in 60 days.
    d. Purchased supplies for $1,560 cash.
    e. Negotiated and signed a two-year 511,000 loan at the bank, receiving cash at the time.
    f. Used the money from (e) to purchase a computer for 52,750 (for recoodkeeping and inventory
    tracking): used the balance for furniture and fixtures for the store
    g. Placed a grand opening advertisement in the local paper for 5400 cash; the ad ran in the
    current month.
    h. Made sales on Valentine's Day totaling 53:500: 52,675 was in cash and the rest on accounts
    receivable. The cost of the candy sold was 51,600.
    i. Made a $550 payment on accounts payable.
    j. incurred and paid employee wages of 51,300.
    k Collected accounts receivable of $600 from customers.
    l. Made a repair to one of the display cases for $400 cash.
    m. Made cash sales of $1,200 during the rest of the month. The cost of the candy sold was
    $600.
    Required:
    1. Set up appropriate T-accounts for Cash, Accounts Receivable, Supplies, Inventory, Prepaid
    Expenses, Equipment, Furniture and Fixtures, Accounts Payable, Notes Payable, Common
    Stock, Additional Paid-in Capital, Sales Revenue, Cost of Goods Sold (expense), Advertising
    Expense, Wage Expense, and Repair Expense. All accounts begin with zero balances.
    2. Record in the T-accounts the effects of each transaction for Kaylee's Sweets in February,
    referencing each transaction in the accounts with the transaction letter. Show the ending
    balances in the T-accounts. Note that transactions ( h ) and ( m ) require two types of entries,
    one for revenue recognition and one for the expense.
    3. Prepare an income statement at the end of the month ended February 28, 2014.
    4. Write a short memo to Kaylee offering your opinion on the results of operations during the
    first month of business.
    5. After three years in business, you are being evaluated for a promotion. One measure is how
    effectively you managed the sales and expenses of the business. The following data are
    available:

    Unlock answers here solutiondone.online

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