During its first week of operations, January 1 to 7, 2017, Cosy Comfort Furniture Company completed six transactions with the dollar effects indicated in the following schedule: 

Required: 

1. Write a brief explanation of transactions (a) through (f). Explain any assumptions that you made. 

2. Compute the ending balance in each account and prepare a classified balance sheet for Cosy Comfort Furniture Company on January 7, 2017. 

3. As of January 7, 2017, has most of the financing for Cosy Comfort’s investments in assets come from liabilities or shareholders’ equity?

Transcribed Image Text:

Assets Liabilities Shareholders' Equity Cash Notes Payable Contributed Capital Equipment $ 0 Land Beginning $ $ 0 $ 0 %3D (a) +12,000 +12,000 (Ъ) +50,000 +50,000 (c) -4,000 +12,000 +8,000 (d) (e) +4,000 +4,000 -7,000 +7,000 (f) +3,000 +3,000 Ending $ $ $ I| || || || ||||