E$2-11$

LO$2-4,2-5$

Inferring Investing and Financing Transactions and Preparing a Balance Sheet

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

$\backslash$table$[[$Accounts$,$DOLLAR EFFECT OF EACH OF THE SIX TRANSACTIONS,$\backslash$table$[[$Ending$],[$Balance$]]],[1,2,3,4,5,6],[$Cash$,$$$15,000,$$$75,000,$$$(5,000),$$$(1,000),$$$(9,500),$$$(4,000),],[$Notes receivable $($short$-$term$),,,,1,000,,,],[$Store fixtures,,,,,$9,500,,],[$Operating lease right$-$of$-$use assets,,,$135,000,,,,],[$Notes payable $($due in three months$),,75,000,,,,(4,000),],[$Long$-$term lease liabilities,,,$130,000,,,,],[$Common stock $(15,000$ shares$),1,500,,,,,,],[$Additional paid$-$in capital,$13,500,,,,,,]]$

Required:

Write a brief explanation of transactions $(1)$ through $(6).$ Explain any assumptions that you made.

Compute the ending balance in each account and prepare a classified balance sheet for FastTrack Sports Inc. on January $7.$