Kiernan Kite Company (a corporation) sells and repairs kites from manufacturers around the world. Its stores are located in rented space in malls and shopping centres. During its first month of operations ended April 30, 2015, Kiernan 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). Explain any assumptions that you made.
2. Compute the ending balance in each account and prepare a statement of earnings for the company for April 2015 and a classified statement of financial position as at April 30, 2015.

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Ending Balance Accounts Dollar Effect of Each of the Eight Transactions b) Cash Trade receivables Inventory Prepayments Store fixtures Trade payables Deferred revenue Share capital Sales revenue Cost of sales Wages exp Rent expense Utilities expense | l $(5,000) | $7,000 3,000 | $(2.000) | $50,000 $(10,000) $(1,000) $3,000 20,000(3,000) (300) 1,500 0,000 15,000 1,200 2,000 50,000 10,000 3,000 1,000 300 1,000 500 1.200