Required: The following are the transactions of Spotlighter, Incorporated, for the month of January. For each transaction, indicate the accounts, amounts, and direction of the effects on the accounting equation. A sample is provided. (Enter any decreases to account balances with a minus sign.) a. (Sample) Borrowed $5,040 from a local bank on a note due in six months. b. Received $5,730 cash from investors and issued common stock to them. c. Purchased $2,100 in equipment, paying $750 cash and promising the rest on a note due in one year. d. Paid $850 cash for supplies. e. Bought and received $1,250 of supplies on account. a. b. C. C. d. d. e. Cash Assets 5,040 Notes Payable (short-term) = = Liabilities = + 5,040 + + + + + + + Stockholders' Equity
Required: The following are the transactions of Spotlighter, Incorporated, for the month of January. For each transaction, indicate the accounts, amounts, and direction of the effects on the accounting equation. A sample is provided. (Enter any decreases to account balances with a minus sign.) a. (Sample) Borrowed $5,040 from a local bank on a note due in six months. b. Received $5,730 cash from investors and issued common stock to them. c. Purchased $2,100 in equipment, paying $750 cash and promising the rest on a note due in one year. d. Paid $850 cash for supplies. e. Bought and received $1,250 of supplies on account. a. b. C. C. d. d. e. Cash Assets 5,040 Notes Payable (short-term) = = Liabilities = + 5,040 + + + + + + + Stockholders' Equity
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Required:
The following are the transactions of Spotlighter, Incorporated, for the month of January. For each transaction, indicate the accounts,
amounts, and direction of the effects on the accounting equation. A sample is provided. (Enter any decreases to account balances
with a minus sign.)
a. (Sample) Borrowed $5,040 from a local bank on a note due in six months.
b. Received $5,730 cash from investors and issued common stock to them.
c. Purchased $2,100 in equipment, paying $750 cash and promising the rest on a note due in one year.
d. Paid $850 cash for supplies.
e. Bought and received $1,250 of supplies on account.
a.
b.
C.
C.
d.
d.
e.
Cash
Assets
5,040 Notes Payable (short-term)
=
=
Liabilities
=
+
5,040 +
+
+
+
+
+
+
Stockholders' Equity](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd6b2aec3-4d93-4f43-96e9-92fb1bf3f514%2F4c183626-c28b-4768-b241-9afdca594722%2Fqtwvrj_processed.png&w=3840&q=75)
Transcribed Image Text:Required:
The following are the transactions of Spotlighter, Incorporated, for the month of January. For each transaction, indicate the accounts,
amounts, and direction of the effects on the accounting equation. A sample is provided. (Enter any decreases to account balances
with a minus sign.)
a. (Sample) Borrowed $5,040 from a local bank on a note due in six months.
b. Received $5,730 cash from investors and issued common stock to them.
c. Purchased $2,100 in equipment, paying $750 cash and promising the rest on a note due in one year.
d. Paid $850 cash for supplies.
e. Bought and received $1,250 of supplies on account.
a.
b.
C.
C.
d.
d.
e.
Cash
Assets
5,040 Notes Payable (short-term)
=
=
Liabilities
=
+
5,040 +
+
+
+
+
+
+
Stockholders' Equity
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