Question 2

Note: Drop down answer options

At February 28

For the Month Ended February 28

Expenses

Revenues

Accounts Payable

Accounts receivable

Additional paid-in-capital

Advertising expense

Cash

Commision expense

Common Stock

Consulting expense

Cost of goods sold

Equipment

Fuel expense

Games revenue

Insurance expense

Interest expense

Interest revenue

Inventory

Land

Miscellaneous expenses

Prepaid expenses

Rent expenses

Rent revenue

Repair expense

Retained earnings

Sales Revenue

Supplies

Supplies expense

Unearned revenue

Utilities expense

Wage expense

Wages payable

Question 3

Required information P3-4 (Algo) Analyzing the Effects of Transactions Using T-Accounts, Preparing an Income Statement, and Evaluating the Net Profit Margin Ratio as a Manager LO3-4, 3-5, 36 [The following information applies to the questions displayed below.] 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 $29,300 cash to form the corporation; issued 500 shares of $0.10 par value common stock. b. Paid three months' rent for the store at $1,790 per month (recorded as prepaid expenses). c. Purchased and received candy for $5,600 on account, due in 60 days. d. Purchased supplies for $1,430 cash. e. Negotiated and signed a two-year $12,000 loan at the bank, receiving cash at the time. f. Used the money from (e) to purchase a computer for $3,250 (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 $490 cash; the ad ran in the current month. h. Made sales on Valentine's Day totaling $3,800;$2,660 was in cash and the rest on accounts receivable. The cost of the candy sold was $2,000. i. Made a $560 payment on accounts payable. j. Incurred and paid employee wages of $1,900. k. Collected accounts receivable of $185 from customers. I. Made a repair to one of the display cases for $120 cash. m. Made cash sales of $3,300 during the rest of the month. The cost of the candy sold was $2,110. Required: 1 \& 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: *At the end of 2021 , Kaylee decided to open a second store, requiring loans and inventory purchases prior to the store's opening in early 2022. 5-a. Compute the net profit margin ratio for each year. (Round your answers to 1 decimal place.) 5-b. Do you think you should be promoted? Yes No