Journal entries and statement preparation $($LO $2-12)$

Bob's Chocolate Chips and More, a bakery specializing in gourmet pizza and chocolate chip cookies, started business Octaber $1,201.$ The following transactions occurred during the month of October.

a$.$ Common stock of $$90,000$ was sold at par to start the business.

c$.$ Ingredients costing $$15,000$ were purchased an account during the month and all but $$5000$ was paid for by the end of the month.

d$.$ Rent is $$500$ a month. Octaber, November, and December's rent was paid October $5$

e$.$ A payment of $$800$ for utilities was made during the month.

f$.$ Sixty percent of the ingredients purchased in part c were prepared and sold for $$35,000$ on account $$28\mathrm{.}000$ was collected on sccounts receivable during the month.

g$.$ Wages of $$5,200$ were paid during the month. Moreover, wages for the last three days of the month arnounted to $$400$ and will be paid during the first week of Novernber.

h$.$ Borrowed $$12,000$ from the bank for additional working capital requirements, and $$3,000$ was repaid by month end. Interest on the unpaid loan baliance amounted to $$450$ at the end of $O$ ctober and was paid on November $5.$

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