During its first month of operations, March 2014, Falla Fashions, Inc., completed four transactions with the dollar effects indicated in the following schedule:

Required:
1. Write a brief explanation of transactions (a) through (d). Explain any assumptions that you made.
2. Compute the ending balance in each account and prepare a classified balance sheet for Falla Fashions, Inc., at the end of March 2014.
3. As of March 31, 2014, has most of the financing for Falla's investment in assets come from liabilities or shareholders' equity?

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DOLLAR EFFECT OF EACH OF THE FOUR TRANSACTIONS Ending Balance Accounts (a) (ы) $(4,000) (c) (d) $(4,000) 4,000 Cash Computer Equipment Delivery Truck Short-Term Bank Loan Long-Term Notes Payable Contributed Capital $50,000 $5,000 25,000 5,000 21,000 50,000