The following are the transactions of Spotlighter, Inc., for the month of January. Borrowed $4,940 from a local bank on a note due in six months. Received $5,630 cash from investors and issued common stock to them. Purchased $2,000 in equipment, paying $700 cash and promising the rest on a note due in one year. Paid $800 cash for supplies. Bought and received $1,200 of supplies on account. Prepare a classified balance sheet for Spotlighter, Inc., as of January 31.

Question

Camryn Doyle

Business

4 June, 11:00

The following are the transactions of Spotlighter, Inc., for the month of January. Borrowed $4,940 from a local bank on a note due in six months. Received $5,630 cash from investors and issued common stock to them. Purchased $2,000 in equipment, paying $700 cash and promising the rest on a note due in one year. Paid $800 cash for supplies. Bought and received $1,200 of supplies on account. Prepare a classified balance sheet for Spotlighter, Inc., as of January 31.

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Efrain · Answer 1

Assets

Current Assets Current Liabilities

Cash 9,070 Account Payable 1,200

Supplies 2,000 note payable 6,240

Total current 11,070 Equity

Equipment 2,000 Common Stock 5,630

Total Assets 13,070 Liabilities + Equity 13,070

Explanation:

For the accounts which more than one movement we do T-accounts to find his balance. The rest only got one movement so is not necessary.

cash

debit credit

4,940

5,630

700

800

9,070

note payable

debit credit

4,940

1,300

6,240

supplies

debit credit

800

1,200

2,000