Question

Ending Balance (b) DOLLAR EFFECT OF EACH OF THE EIGHT TRANSACTIONS Accounts (a) (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 classified balance sheet for Kate's Kite Company on April 30. KATE'S KITE COMPANY Balance Sheet Assets Liabilities and Shareholders' Equity Current Liabilities: Current Assets: Total current assets Long Term Assets: Total current liabilities Shareholders' Equity: Total shareholders' equity Total Liabilities & Shareholders' Equity Total Assets

Answer 1

2						DOLLAR EFFECT OF EACH OF THE EIGHT TRANSACTIONS								Ending Balance
	Accounts					(a)	(b)	c)	(d)	e)	(f)	(g)	(h)
	Cash					64400	-11700	-5900	9680		-1210	-2200	3840	56910
	Accounts receivable								2820					2820
	Inventory							24400	-5710					18690
	Prepaid expenses											1650		1650
	Store fixtures						11700							11700
	Accounts payable							18500		1480				19980
	Unearned revenue												2400	2400
	Common stock					9660								9660
	Additional paid-in capital					54740								54740
	Sales revenue								12500				1440	13940
	Cost of sales								5710					5710
	Wage expense										1210			1210
	Rent expense											550		550
	Utilities expense									1480				1480
					Balance sheet
					$					$
		Assets				Liabilities and shareholder's equity
	Current assets:					Current liabilities:
	Cash				56910	Accounts payable					19980
	Accounts receivable				2820	Unearned revenue					2400
	Inventory				18690
	Prepaid expenses				1650
	Total current assets			A	80070	Total current liabilities				C	22380
	Long term assets:					Shareholder's equity:
	Store fixtures			B	11700	Common stock					9660
						Additional paid-in capital					54740
						Retained earnings				(Note:1)	4990
						Total shareholder's equity				D	69390
	Total assets			A+B	91770	Total liabilities and shareholder's equity				C+D	91770
	Note:1
	Retained earnings=Net income (Since it is the first year of operation)
	Net income:
					$	$
	Sales revenue					13940
	Less:
	Cost of sales				5710
	Wage expense				1210
	Rent expense				550
	Utilities expense				1480	8950
	Net income					4990