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

ID: 2562649 • Letter: F

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 minus sign.) a. (Sample) Borrowed $5,240 from a local bank on a Note due in six months. b. Received $5,930 cash from investors and issued common stock to them. c. Purchased $2,300 in Equipment, paying $850 cash and promising the rest on a Note due in one year. d. Paid &950 cash for Supplies. e. Bought and received $1,350 of Supplies on Account. Assets a. Cash b. c. d. e. Liabilities a. Notes Payable (short-term) $5,240 b. c. d. e. Stockholders’ Equity a. b. c. d. e. 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 minus sign.) a. (Sample) Borrowed $5,240 from a local bank on a Note due in six months. b. Received $5,930 cash from investors and issued common stock to them. c. Purchased $2,300 in Equipment, paying $850 cash and promising the rest on a Note due in one year. d. Paid &950 cash for Supplies. e. Bought and received $1,350 of Supplies on Account. Assets a. Cash b. c. d. e. Liabilities a. Notes Payable (short-term) $5,240 b. c. d. e. Stockholders’ Equity a. b. c. d. e. 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 minus sign.) a. (Sample) Borrowed $5,240 from a local bank on a Note due in six months. b. Received $5,930 cash from investors and issued common stock to them. c. Purchased $2,300 in Equipment, paying $850 cash and promising the rest on a Note due in one year. d. Paid &950 cash for Supplies. e. Bought and received $1,350 of Supplies on Account. Assets a. Cash b. c. d. e. Liabilities a. Notes Payable (short-term) $5,240 b. c. d. e. Stockholders’ Equity a. b. c. d. e.

Explanation / Answer

Assets Liabilities + Stock holders Equity Cash + Equipment + Supplies = Notes payable (Short term) + Accounts Payable + a Borrowed From Bank 5240 = 5240 b Received Cash from Investors 5930 + = + 5930 c Purchase Equipment -850 + 2300 + = 1450 + + d Paid for Supplies -950 + 950 = e Bought and received Supplies 1350 = 1350 + 9370 + 2300 + 2300 = 6690 + 1350 + 5930