Question

-4 M2-12 Reporting a Classified Balance Sheet Given the transactions in M2-9 (including the sample), prepare a classified balance sheet for Spotlighter, Inc., as of January 31.

Answer 1

Answer
SPOTLIGHTER INC.
Balance Sheet
At January 31
Current Assets:		Current Liabilities:
Cash	$        8,070	Accounts Payable	$     700
Supplies	$        1,000	Notes Payable	$ 4,740
Total Current Assets	$        9,070	Total Current Liabilities	$ 5,440
		Long term Debt	$        -
Property, Plant and Equipment:
		Total Liabilities	$ 5,440
Equipment	$        1,000
Total Fixed Assets	$        1,000	Stockholder's Equity:
		Common Stock	$ 4,630
Total Assets	$      10,070	Total Liabilities and Stockholder's Equity	$10,070
Working:
a. Cash
Beginning Balance		$                                                      -
Add:
Borrowed from bank	$        3,940
Issued Common stock	$        4,630	$                                                8,570
Less:
Purchased Equipment	$           200
Paid for supplies purchased	$           300	$                                                   500
Endin Balance		$                                                8,070
b.Supplies
Beginning Balance		$                                                      -
Add:
Supplies purchased for cash	$           300
supplies purchased on account	$           700	$                                                1,000
Less:
Supplie used	$              -	$                                                      -
Ending Balance		$                                                1,000
C. Equipment
Beginning Balance		$                                                      -
Add:
Equipment purchased	$        1,000	$                                                1,000
Less:
Accumulated depreciation	$              -	$                                                      -
Ending Balance		$                                                1,000
D. Accounts Payable
beginning Balance		$                                                      -
Add:
Purchased supplies on account	$           700	$                                                   700
Less:
Cash paid to creditors	$              -	$                                                      -
Ending Balance		$                                                   700
E. Notes Payable
Beginning Balance		$                                                      -
Add:
Borrowed from bank	$        3,940
Purchased Equipment	$           800	$                                                4,740
Less:
Cash paid for notes payable	$              -	$                                                      -
Ending Balance		$                                                4,740
F. Common Stock
Beginning balance		$                                                      -
Add:
Issued Common Stock		$                                                4,630
Less:
Stock repurchased	$              -	$                                                      -
Ending Balance		$                                                4,630