Difficulty 3 Hard Leaming Objective 0305 Prepare a Ask yout

Difficulty: 3 Hard Leaming Objective: 03-05 Prepare a Ask yout instructor·question Cock my work Required Information 0.62 points (The following ntrmation applies to the questions dspiayed below. Kaylee James, a conngisseur of fine chocolate, opened Kaylee\'s Sweets in Collegetown on February 1 The shop specializes in a selection of gourmet chocolate candies and a ine of gourmet ice cream. You have been hired as manager. Your duties include maintaining the store\'s financial records. The following transactions occurrea in February, the first month of operations 3. Prepare an income statement at the end of the frst a. Received four shareholders contributions sotaling $29,500 cash to form the corporation: issued 500 shares of $010 par value common stock b. Paid theee months\' rent for the store at $1840 per morth (recorded as prepeid expenses) c Purchased and received candy for $6,400 on account, due in 60 days. d. Purchased supplies for $1.330 cash e. Negotiated and signed a two-year $14,000 loan at the bank receving cash at the time t Used the money from (e) to punchase a computer for $3,300 (for recordkeeping and inventory trackingt used the belance for furniture and fixtures for the store L -gPlaced a grand opening advertisement in the local paper for S470 cast the ad References eBook & Resources MacBook Air

Solution

Kaylees sweets

Income statement (unadjusted)

Particulars	amount
Revenue	0
Less
Cost of goods sold	0
Advertisement	470
Rent	1840
Loss	2330