Kaylee James, a connoisseur of fine chocolate, opened Kaylee's Sweets in Collegetown on February 1. The...

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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 $29,600 cash to form the corporation; issued 400 shares of $0.10 par value common stock. b. Paid three months' rent for the store at $1,840 per month (recorded as prepaid expenses). c. Purchased and received candy inventory for $5,800 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, receiving cash at the time. f. Used the money from (e) to purchase a computer for $2,850 (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 $440 cash; the ad ran in the current month. h. Made sales on Valentine's Day totaling $3,300; $2,725 was in cash and the rest on accounts receivable. i. The cost of the candy sold in (h) above was $1,500. (Reminder. Used inventory is an expense called Cost of Goods Sold.) j. Made a $580 payment on accounts payable. k. Incurred and paid employee wages of $1,800. I. Collected accounts receivable of $175 from customers. m. Made a repair to one of the display cases for $110 cash. n. Made cash sales of $2,700 during the rest of the month. o. The cost of the candy sold in (n) above was $1,510. Required: 1 and 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. 3. Prepare an unadjusted income statement at the end of the first month of operations ended February 28. 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: Total assets Total liabilities 2024 2023 2025* $87,000 $48,000 $43,000 53,500 25,000 21,000 33,500 23,000 Total stockholders' equity Net sales revenue 22,000 Net income 93,000 80,500 22,700 11,200 57,000 5,100 *At the end of 2025, Kaylee decided to open a second store, requiring loans and inventory purchases prior to the store's opening in early 2026. 5-a. Calculate the net profit margin ratio for each year. 5-b. Do you think you should be promoted? 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 $29,600 cash to form the corporation; issued 400 shares of $0.10 par value common stock. b. Paid three months' rent for the store at $1,840 per month (recorded as prepaid expenses). c. Purchased and received candy inventory for $5,800 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, receiving cash at the time. f. Used the money from (e) to purchase a computer for $2,850 (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 $440 cash; the ad ran in the current month. h. Made sales on Valentine's Day totaling $3,300; $2,725 was in cash and the rest on accounts receivable. i. The cost of the candy sold in (h) above was $1,500. (Reminder. Used inventory is an expense called Cost of Goods Sold.) j. Made a $580 payment on accounts payable. k. Incurred and paid employee wages of $1,800. I. Collected accounts receivable of $175 from customers. m. Made a repair to one of the display cases for $110 cash. n. Made cash sales of $2,700 during the rest of the month. o. The cost of the candy sold in (n) above was $1,510. Required: 1 and 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. 3. Prepare an unadjusted income statement at the end of the first month of operations ended February 28. 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: Total assets Total liabilities 2024 2023 2025* $87,000 $48,000 $43,000 53,500 25,000 21,000 33,500 23,000 Total stockholders' equity Net sales revenue 22,000 Net income 93,000 80,500 22,700 11,200 57,000 5,100 *At the end of 2025, Kaylee decided to open a second store, requiring loans and inventory purchases prior to the store's opening in early 2026. 5-a. Calculate the net profit margin ratio for each year. 5-b. Do you think you should be promoted?

Answer rating: 100% (QA)

Kaylees Sweets Transactions in TAccounts Heres a breakdown of the transactions for Kaylees Sweets in ... View the full answer