Inferring Investing and Financing Transactions and Preparing a Balance Sheet
During its first month of operations in March 2011, Volz Cleaning, Inc., completed six transactions with the dollar effects indicated in the following schedule:

Required:
1. Write a brief explanation of transactions (1) through (6). Explain any assumptions that you made.
2. Compute the ending balance in each account and prepare a classified balance sheet for Volz Cleaning, Inc., at the end of March2011.

Transcribed Image Text:

Dollar Effect of Each of the Six Transactions Ending Balance Accounts Cash $50,000 $(6,000) $4,000) $(7,000) 7,000 $2,000 Investments (short-tem) Notes receivable (due in six months) (2,000) 4,000 Computer equipment Delivery truck Notes payable (due in 10 years) Contributed capital $4,000 30.000 24,000 4,000 50,000