Inferring Investing and Financing Transactions and Preparing a Balance Sheet
During its first week of operations ending January 7, 2011, FastTrack Sports Inc. completed six transactions with the dollar effects indicated in the following schedule:

Required:
1. Write a brief explanation of each transaction. 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 7,2011.

Transcribed Image Text:

Dollar Effect of Each of the Six Transactions Ending Accounts 6. 2 Balance $15,000 $75,000 S(5,000) $(4,000) $(9,500) Cash Note receivable (short-term) Store fixtures 4,000 9,500 $4,000 Land 16,000 Note payable (due in three months) Contributed capital 11,000 4,000 75,000 15,000