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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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  1. 4 June, 11:14
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    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
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