Inferring Investing and Financing Transactions and Preparing a Balance Sheet
During its first month of operations in March 201 1. Volz Cleaning. 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 | $50.000 | $(6.000) | $(4.000) | $(7.000) | $2,000 |
|
|
Investments (short-term) |
|
|
| 7.000 | (2.000) |
|
|
Notes receivable (due in six months) |
|
| 4.000 |
|
|
|
|
Computer equipment |
|
|
|
|
| $4.000 |
|
Delivery truck |
| 30.000 |
|
|
|
|
|
Notes payable (due in 10 years) |
| 24.000 |
|
|
|
|
|
Contributed capital | 50.000 |
|
|
|
| 4,000 |
|
Required:
1. Write a brief explanation of transactions (1) through (6). Explain any assumptions that you made.
2. Compute the ending balance in each account and prepare a classified balance sheet for Volz Cleaning. Inc., at the end of March 2011.
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