Inferring Operating Transactions and Preparing an Income Statement and Balance Sheet
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. 201 I. Kale's Kite Company completed eight transactions with the dollar effects indicated in the following schedule:
Accounts. | DOLLAR EFFECT OF EACH OF THE EIGHT TRANSACTIONS | Ending Balance | |||||||
(a). | (b). | (c) | (d). | (e) | (f). | (g). | (h). | ||
Cash | $63.300 | S( 13.700) | S( 6.200) | $8.680 |
| S( 1.240) | S( 2.480) | $3.720 |
|
Accounts Receivable |
|
|
| 3.720 |
|
|
|
|
|
Inventory |
|
| 24.800 | (6.510) |
|
|
|
|
|
Prepaid Expenses |
|
|
|
|
|
| 1. .860 |
|
|
Store Fixtures |
| 13.700 |
|
|
|
|
|
|
|
Accounts Payable |
|
| 18.600 |
| $1.480 |
|
|
|
|
Unearned Revenue |
|
|
|
|
|
|
| 2.480 |
|
Contributed Capital | 63,300 |
|
|
|
|
|
|
|
|
Sales Revenue |
|
|
| 12.400 |
|
|
| 1. ,240 |
|
Cost of Sales |
|
|
| 6.510 |
|
|
|
|
|
Wages Expense |
|
|
|
|
| 1,240 |
|
|
|
Rent Expense |
|
|
|
|
|
| 620 |
|
|
Utilities Expense |
|
|
|
| 1,480 |
|
|
|
|
Required:
1. Write a brief explanation of transactions (a) through (/i). Include any assumptions that you made.
2. Compute the ending balance in each account and prepare an income statement and a classified balance sheet for Kate's Kite Company on April 30, 2011.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.