The following are the transactions of Spotlighter, Inc., for the month of Januar

Question

The following are the transactions of Spotlighter, Inc., for the month of January: a. Borrowed $4,540 from a local bank on a note due in six months. b. Received $5,230 cash from investors and issued common stock to them. c. Purchased $2,200 in equipment, paying $800 cash and promising the rest on a note due in one year. d. Paid $900 cash for supplies. e. Bought and received $1,300 of supplies on account. 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.)

Explanation / Answer

Answer: Journal Entry:

a Cash A/C Dr. $4540

         To Notes Payable A/C            $4540

b. Cash A/C Dr. $5230

         To Contributed capital A/C            $5230

c. Equipment A/C Dr. $2200

            To cash A/C                     $800

            To Notes Payable A/c        $1400

d. Supplies A/C Dr. $900

        To cash A/c                 $900

e. Supplies A/C Dr. $1300

        To Accounts Payable A/c                 $1300

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

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