Home Comfort Furniture Company completed four transactions with the dollar effects indicated in the following schedule:

Required:
1. Write a brief explanation of transactions (1) through (4). Explain any assumptions that you made.
2. Compute the ending balance in each account.
3. Has most of the financing for Home Comfort€™s investments in assets come from liabilities or stockholders€™ equity?

Transcribed Image Text:

Liabilities + Stockholders' Equity Cash Equipment Notes Pavable Common Stock Beginning $0 +12.000 +50,000 0 0 0 +12,000 4.000 12,000 +4000 +50,000 +8,000 +4,000 Ending