Kates Kite Company (a corporation) sells and repairs kites from manufacturers around the world. Its stores are

Question:

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:

Required:
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 for Kate’s Kite Company on April 30, 2014.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...