Chapter 2, Problem 2.12E

Inferring Investing and Financing Transactions and Preparing a Balance Sheet

During its first month of operations in March, Volz Cleaning. Inc., completed six transactions with the dollar effects indicated in the following schedule:

Accounts	Dollar Effect of Each of the Six Transactions						Ending Balance
	1	2	3	4	5	6
Cash	$45,000	$(8,000)	$(2,000)	$(7,000)	$3,000	$(4,000)
Investments (short-term)				7,000	(3,000)
Notes receivable (due in six months)			2,000
Computer equipment						$4,000
Delivery truck		35,000
Notes payable (due in 10 years)		27,000
Common stock (3,000 shares)	6,000
Additional paid-in capital	39,000

Required:

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