Question

Kate's Kite Company (a corporation) sells and repairs kites from manufacturers around the world. Its stores are located in rented space in malls and shopping centers. During its first month of operations ended April 30, Kate's Kite Company completed eight transactions with the dollar effects indicated in the following schedule: Ending Balance DOLLAR EFFECT OF EACH OF THE EIGHT TRANSACTIONS Accounts (a) (b) B (c) (d) (e) (f) (g) (h) Cash $ 64,400 $(11,700) $(5,900) $ 9,680 $(1,210) $(2,200) $ 3,840 Accounts Receivable 2,820 Inventory 24,400 (5,710) Prepaid Expenses 1,650 Store Fixtures 11,700 Accounts Payable 18,500 $1,480 Unearned Revenue 2,400 Common Stock ($1 par value) 9,660 Additional Paid-in Capital 54,740 Sales Revenue 12,500 1,440 Cost of Sales 5, 710 Wages Expense 1,210 Rent Expense 550 Utilities Expense 1,480 Required: 2. Compute the ending balance in each account and prepare an unadjusted classified income statement and a classified balance sheet for Kate's Kite Company on April 30. Complete this question by entering your answers in the tabs below. Req 2A Req 2B Compute the ending balance in each account and prepare an unadjusted classified income statement for Kate's Kite Company on April 30. KATE'S KITE COMPANY Income Statement (unadjusted) Total revenues Expenses: Total operating expenses

Answer 1

KATE'S KITE COMPANY Income Statement(Unadjusted) For the Month Ended April 30 Sales Revenue $13,940 Total revenues S13,940 Expesnes: Cost of sales $5,710 Wages expense Rent expense Utilities expense $1,210 $550 $1,480 Total operating expenses S8,950 Net Income $4,990 KATE'S KITE COMPANY Balance Sheet At April 30 Assets Liabilities and Stockholders' Equity Current Assets: Current Liabilities: Cash $56,910 Accounts Payable $2,820 Unearned Revenue $19,980 Accounts Receivable $2,400 $18,690 Inventory Prepiad Expenses $1,650 Total current assets S80,070 Total current liabilties S22,380 Stockholders' Equity Store Fixtures $11,700 Common Stock $9,660 Additional paid-in capita Retained Earnings Total Stockholders' Equity $54,740 $4,990 S69,390 S91,770 Total Assets $91,770 Total Liabilities and Stockholders' Equity