The following are the transactions of Spotlighter, Inc for the month of January

Question

The following are the transactions of Spotlighter, Inc for the month of January 2013: Borrowed $3,940 from a local bank on a note due In six months. Received $4,630 cash from investors and issued stock to them Purchased $1000 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 Prepare journal entries for each transaction (If no entry is required for a Entry Required" in the first account field.)

Explanation / Answer

Spotlighter. Inc. (All amounts in $) Journal Entries for the month of January 2013 a. Bank A/c DR 3940 To Note Payable A/c 3940 b. Cash A/c DR 4630 To Common Stock A/c 4630 c. Equipment A/c DR 1000 To Cash A/c 200 To Note Payable A/c 800 d. Supplies A/c DR 300 To Cash A/c 300 e. Supplies A/c DR 700 To Accounts Payable A/c 700

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.