During its first week of operations, January 1 to 7, 2014, Cosy Comfort Furniture Company completed six

Question:

During its first week of operations, January 1 to 7, 2014, Cosy Comfort Furniture Company completed six transactions with the dollar effects indicated in the following schedule:

Assets + Shareholders' Equity Contributed Capital Liabilities Notes Payable Cash Equipment Land 0 $ 0 $ Beginning $ +12,

Required:
1. Write a brief explanation of transactions (a) through (f). Explain any assumptions that you made.
2. Compute the ending balance in each account and prepare a classified balance sheet for Cosy Comfort Furniture Company on January 7, 2014.
3. As of January 7, 2014, has most of the financing for Cosy Comfort's investments in assets come from liabilities or shareholders' equity?

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...