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. Post the effects to the appropriate T-accounts and determine ending account balances Show a beginning balance of zero. ® Answer is not complete. Cash 0 4,540 5,230 Supplies Beg Balo 900 Beg. Bal. 1.3000 800 8.970 End Bal. 2.200 Equipment Accounts Payable Beg Bal. Beg Bal 2.200 1,300 End. Bal. 2,200 End. Bal 1,300

Answer 1

Solution:

Cash Supplies Beg. Bal d. Beg. Bal 4,540 900 a. b. 5,230 1,300 e. 800 c. 900 d. 8,070 End. Bal End. Bal 2,200 Accounts payable Equipment Beg. Bal Beg. Bal 2,200 1,300 e. c. End. Bal 2,200 End. Bal 1,300 Notes payable Common stock Beg. Bal Beg. Bal 4,540 a. 1,400 c. 5,230 b. End. Bal 5,940 End. Bal 5,230

note: If you do not have one extra raw in cash account then post the 'd' transaction in adjusted manner like this:

Cash Beg. Bal 4,540 a. b. 800 c. 5,230 900 d. End. Bal 8,070