The following are the transactions of Spotlighter, Inc., for the month of January. a. Borrowed $3,940 from a local bank on a note due in six months. b. Received $4,630 cash from investors and issued common stock to them. c. Purchased $1000 in equipment, paying $200 cash and promising the rest on a note due in one year. d. Paid $300 cash for supplies. e. 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.

Question

Angelo Terry

Business

3 July, 16:47

The following are the transactions of Spotlighter, Inc., for the month of January. a. Borrowed $3,940 from a local bank on a note due in six months. b. Received $4,630 cash from investors and issued common stock to them. c. Purchased $1000 in equipment, paying $200 cash and promising the rest on a note due in one year. d. Paid $300 cash for supplies. e. 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.

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Kasey Munoz · Answer 1

Cash Supplies

Beg. Bal. Beg. Bal.

Notes Payable 3940 Cash 300

Contributed capital 4630 Accounts Payable 700

Equipment 200

Supplies 300 End. Bal. 1000

End. Bal. 8070

Accounts Payable

Contributed Capital

Equipment Beg. Bal.

Beg. Bal. Supplies 700

Cash 200

Notes Payable 800 End. Bal. 700

End. Bal. 1000

Notes Payable Beg. Bal.

Beg. Bal. Cash 4630

Cash 3940

Equipment 800

End. Bal. 4630

End. Bal. 4740

Trial Balance

Debit Credit

Cash 8070

Supplies 1000

Equipment 1000

Accounts Payable 700

Notes Payable 4740

Contributed Capital 4630

Total 10070 10070