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 $4,240 from a local bank on a note due in six months. b. Received $4.930 cash from investors and issued common stock to them. c. Purchased $1,300 In equipment, paying $350 cash and promising the rest on a note due in one year. d. Pald $450 cash for supplies. e. Bought and received $850 of supplies on account. a Cash b Cash c Equipment C Cash d Cash d Supplies e Supplies Assets Liabilities 4,240 Notes Payable (short-term) 4,930 1,300 Notes Payable (short-term) 350 = 450= 1,300= 850 Accounts Payable 4,240. 950. + + . 850+ Common Stock Stockholders' Equity 4.930

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 $4,240 from a local bank on a note due in six months. b. Received $4.930 cash from investors and issued common stock to them. c. Purchased $1,300 In equipment, paying $350 cash and promising the rest on a note due in one year. d. Pald $450 cash for supplies. e. Bought and received $850 of supplies on account. a Cash b Cash c Equipment C Cash d Cash d Supplies e Supplies Assets Liabilities 4,240 Notes Payable (short-term) 4,930 1,300 Notes Payable (short-term) 350 = 450= 1,300= 850 Accounts Payable 4,240. 950. + + . 850+ Common Stock Stockholders' Equity 4.930

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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