During its first week of operations, January 1-7, 2003, Faith's Fine Furniture Company 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 Faith's Fine Furniture Company on January 7. 2003.

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Dollar Effect of Each of the Six Transactions Accounts Cash Short-term note receivable Store fixtures Land Short-term note payable Contributed capital 1 2 3 4 5 6 Ending Balance $12,000 $50,000 $(4,000) $(3,000) $(7.000) 12,000 50,000 8,000 12.000 3,000 7.000 $3.000 3.000