Inferring Investing and Financing Transactions and Preparing a Balance Sheet E2-9
During its first week of operations ending January 7, 2011, FastTrack Sports Inc. completed six transactions with the dollar effects indicated in the following schedule:
Accounts | Dollar Effect of Each of the Six Transactions | Ending Balance | |||||
1 | 2 | 3 | 4 | 5 | 6 | ||
Cash | $15,000 | $75,000 | $(5,000) | $(4,000) | S(9,500) |
|
|
Note receivable (short-term) |
|
|
| 4.000 |
|
|
|
Store fixtures |
|
|
|
| 9,500 |
|
|
Land |
|
| 16,000 |
|
| $4,000 |
|
Note payable (due in three months) |
| 75.000 | 11,000 |
|
| 4,000 |
|
Contributed capital | 15,000 |
|
|
|
|
|
|
Required:
1. Write a brief explanation of each transaction. Explain any assumptions that you made.
2. Compute the ending balance in each account and prepare a classified balance sheet for FastTrack Sports Inc. on January 7. 2011.
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