During its first week of operations ending January 7, 2014, FastTrack Sports Inc. completed six transactions with the dollar effects indicated in the following schedule:

Required:
1. Write a brief explanation of transactions (1) through (6). Explain any assumptions that you made.
2. Compute the ending balance in each account and prepare a classified balance sheet for FastTrack Sports Inc. on January 7,2014.

Transcribed Image Text:

Dolar Effect of Euch of the Six Transactions Ending 6 Balance 2 3 Accounts Cash Notes receivable (short-term) Store fixtures Land Notes payable (due in three months) Common stock (15,000 shares) Additional paid-in capital $15,000 $75,000 $(5,000) $(4,000) S9,500) 4,000 9,500 16,000 4,000 75,000 11,000 4,000 1,500 13,500