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The following are the transactions of Spotlighter, Incorporated, for the month of January. a. Borrowed $4,740 from a local bank on a note due in six months. b. Received $5,430 cash from investors and issued common stock to them. c. Purchased $2,600 in equipment, paying $1,000 cash and promising the rest on a note due in one year. d. Raid $1100

The following are the transactions of Spotlighter, Incorporated, for the month of January. a. Borrowed $4,740 from a local bank on a note due in six months. b. Received $5,430 cash from investors and issued common stock to them. c. Purchased $2,600 in equipment, paying $1,000 cash and promising the rest on a note due in one year. d. Raid $1100

FINANCIAL ACCOUNTING
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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The following are the transactions of Spotlighter, Incorporated, for the month of January. a. Borrowed $4,740 from a local bank on a note due in six months. b. Received $5,430 cash from investors and issued common stock to them. c. Purchased $2,600 in equipment, paying $1,000 cash and promising the rest on a note due in one year. d. Paid $1,100 cash for supplies. e. Bought and received $1,500 of supplies on account. Required: Prepare journal entries for each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Transcribed Image Text:The following are the transactions of Spotlighter, Incorporated, for the month of January. a. Borrowed $4,740 from a local bank on a note due in six months. b. Received $5,430 cash from investors and issued common stock to them. c. Purchased $2,600 in equipment, paying $1,000 cash and promising the rest on a note due in one year. d. Paid $1,100 cash for supplies. e. Bought and received $1,500 of supplies on account. Required: Prepare journal entries for each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
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