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, 2014, Kate’s Kite Company completed eight transactions with the dollar effects indicated in the following schedule:
1. Write a brief explanation of transactions (a) through (h). 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, 2014.