For each of the following transactions of Spotlighter, Inc., for the month of Ja

Question

For each of the following transactions of Spotlighter, Inc., for the month of January, indicate the accounts amounts, and direction of the effects on the accounting equation. A sample is provided. (Enter any decreases to account balances with a minus sign.) a. (Sample) Borrowed $5,940 from a local bank on a note due in six months b Received $6,630 cash from investors and issued common stock to them. c. Purchased $3,000 in equipment, paying $1,200 cash and promising the rest on a note due in one year d Paid $1,300 cash for supplies e. Bought and received $1,700 of supplies on account Assets Liabilities Stockholders' Equity a. Cash b. C. 5,940 Notes Payable (short-term) 5,940

Explanation / Answer

S.NO. ASSETS                                                                     = LIABILITIES                               + STOCKHOLDR'S EQUITY a. Cash 5940 Notes payable (Short term) 5940 b. Cash 6630 Common Stock 6630 c. Equipment 3000 Cash -1200 Notes payable 1800 d. Supplies 1300 Cash -1300 e. Supplies 1700 Accounts payable 1700

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