The following are the transactions of Spotlighter, Inc., for the month of January. Borrowed $3,940 from a local bank on a note due in six months. Received $4,630 cash from investors and issued common stock to them. Purchased $1,000 in equipment, paying $200 cash and promising the rest on a note due in one year. Paid $300 cash for supplies. Bought and received $700 of supplies on account. Post the effects to the appropriate T-accounts and determine ending account balances. Show a beginning balance of zero.
The following are the transactions of Spotlighter, Inc., for the month of January. Borrowed $3,940 from a local bank on a note due in six months. Received $4,630 cash from investors and issued common stock to them. Purchased $1,000 in equipment, paying $200 cash and promising the rest on a note due in one year. Paid $300 cash for supplies. Bought and received $700 of supplies on account. Post the effects to the appropriate T-accounts and determine ending account balances. Show a beginning balance of zero.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The following are the transactions of Spotlighter, Inc., for the month of January.
- Borrowed $3,940 from a local bank on a note due in six months.
- Received $4,630 cash from investors and issued common stock to them.
- Purchased $1,000 in equipment, paying $200 cash and promising the rest on a note due in one year.
- Paid $300 cash for supplies.
- Bought and received $700 of supplies on account.
Post the effects to the appropriate T-accounts and determine ending account balances. Show a beginning balance of zero.
Transcribed Image Text:Cash
Supplies
Beg. Bal.
Beg. Bal.
4,630
300
End. Bal.
4,330|
End. Bal.
ectangular Sip
Equipment
Accounts Payable
Beg. Bal.
Вeg. Bal
End. Bal.
End. Bal.
Notes Payable (short-term)
Common Stock
Beg. Bal.
Beg. Bal.
3,940
End. Bal.
3,940
End. Bal.
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