During its first month ot operations, March 2004, Faye's Fashions. Inc.. completed si\ 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 Faye's Fashions, Inc., at the end of March 2004.

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Accounts Cash Short-term investments Short-term note receivable Computer equipment Delivery truck Dollar Effect of Each of the Six Transactions Ending 1 2 3 4 5 6 Balance $50,000 $(4,000) $(4,000) $(6,000) $2,000 25,000 Long-term note payable 21,000 Contributed capital 50,000 6,000 (2,000) 4,000 $4,000 4,000