During its first week of operations ending January 7, 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.

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Accounts Cash Notes receivable (short-term) Store fixtures Operating lease right-of-use assets Notes payable (due in three months) Long-term lease liabilities Common stock (15,000 shares) Additional paid-in capital DOLLAR EFFECT OF EACH OF THE SIX TRANSACTIONS 3 4 5 6 $(5,000) $(1,000) $(9,500) $(4,000) 1,000 1 $15,000 1,500 13,500 $75,000 75,000 135,000 130,000 9,500 (4,000) Ending Balance