Question

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, Answer is not complete. SPOTLIGHTER INC. Balance Sheet At January 31 Liabilities Current Liabilities 8,070 Accounts Payable 1,000 Bad Debt Expense Assets Current Assets Cash Supplies S $ 700 X (3,940) ®

Answer 1

Spotlighter Inc.
Balance Sheet
At January 31
Assets	Amount $	Liabilities	Amount $
Current Assets		Current Liabilities
Cash	8,070	Accounts Payable	700
Supplies	1,000	Notes Payable (3,940 + (1,000 - 200 ) )	4,740
Total Current Assets	9,070	Total Current Liabilities	5,440
Property, Plant & Equipment	1,000	Stockholder's Equity
		Common Stock	4,630
Total Assets	10,070	Total Liabilities & Stockholder's Equity	10,070