During its first week of operations ending January 7, 2011, Cirba Sports Inc. completed six transactions with

Question:

During its first week of operations ending January 7, 2011, Cirba 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 Cirba Sports Inc. on January 7,2011.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...