Question

M2-12 Reporting a Classified Balance Sheet [LO 2-4] The following are the transactions of Spotlighter, Inc., for the month of January a. Borrowed $3,940 from a local bank on a note due in six months. b. Received $4,630 cash from investors and issued common stock to them. c. Purchased $1,000 in equipment, paying $200 cash and promising the rest on a note due in one year. d. Paid $300 cash for supplies. e. Bought and received $700 of supplies on account. Prepare a classified balance sheet for Spotlighter, Inc., as of January 31. X Answer is complete but not entirely correct. Assets Current Assets ash $ SPOTLIGHTER INC. Balance Sheet At January 31 Liabilities Current Liabilities 8,070 Accounts Payable 1,000 Notes Payable (short-term) Notes Payable (short-term) 9,070 Total Current Liabilities Stockholders' Equity 1,000 Common Stock ✓$ Supplies 700 800 3,940 X 5,440 Total Current Assets ✓ ✓ Property, Plant, and Equipment 4,630 Total Assets $ 10,070 Total Liabilities and Stockholders' Equity $ 10,070

Answer 1

A C D 1 N B SPOTLIGHTER INC. Balance Sheet At January 31 Laibilities Current Liabilities $ 8,070 Accounts Payable $ 1,000 Notes Payable (short-term) 700 $ $ 4,740 3 4 Assets 5 Current Assets 6 Cash 7 Supplies 8 9 Total Current Assets 10 11 Property, Plant and Equipment 12 13 Total Assets $ 5,440 $ 9,070 Total Current Liabilities Stockholder's Equity $ 1,000 Common Stock 4630 $ 10,070 Total Liabilities and Stockholder's Equity $ 10,070

А B D 1 N C SPOTLIGHTER INC. Balance Sheet At January 31 Laibilities Current Liabilities |=3940+4630-200-300 Accounts Payable 1=300+700 Notes Payable (short-term) 700 =+(1000-200)+3940 3 4 Assets 5 Current Assets 6 Cash 7 Supplies 8 9 Total Current Assets 10 11 Property, Plant and Equipment 12 13 Total Assets =+B6+B7 Total Current Liabilities =+D6+D7 Stockholder's Equity Common Stock 4630 1000 =+B9+811 Total Liabilities and Stockholder's Equity –+09+011