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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.

3-4Analyzing the Effects of Transactions Using T-Accounts, Preparing an Income Statement, and Evaluating the Net Profit Margin Ratio as a Manager LO3-4, s, 36 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 andies and a line of gourmet ice cream. You have been hired as manager. Your duties indude maintaining the store's financial records. The following ransactions occurred in February 2014, the first month of operations. Received four shareholders' contributions totaling $30,200 cash to form the corporation; issued 400 shares of $.10 par value common stock. b. paid three months' rent for the store at $1,750 per month (recorded prepaid expenses). Purchased and received candy for $6,000 on account, due in 60 days. Purchased supplies for $1,560 cash. Negotiated and signed a two-year $11,000 loan at the bank. used the money from (e) to purchase a computer for $2,7so (for recordkeeping and inventory tracking); used the balance for furniture and fixtures for the store. Placed a grand opening advertisement in the local paper for SA00 cash; the ad ran in the current month. Made on Valentine's Day totaling $3,500; $2,675 was in cash and the rest on accounts receivable. The cost of the candy sold was $1,600. Made a $550 payment on accounts payable. Incurred and paid employee wages of $1,300. Collected accounts receivable of $600 from customers. 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 Required Kaylee's sweets referencing each with the transaction 1 & 2, Record in the T-accounts the effects of each transaction for in February, transaction in the accounts letter, show the ending balances inthe T-accounts. An example amount has been posted to the Cash TAccount from transaction (l). Accounts Receivable

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