Question

I don't know what I have left out, maybe my numbers are wrong but I have not a clue what I did wrong. Can someone help me understand what is wrong and help?

The following are the transactions of Spotlighter, Inc., for the month of January. a. Borrowed $4,340 from a local bank on a note due in six months. b. Received $5,030 cash from investors and issued common stock to them. c. Purchased $1,400 in equipment, paying $400 cash and promising the rest on a note due in one year. d. Paid $500 cash for supplies. e. Bought and received $900 of supplies on account. Prepare a classified balance sheet for Spotlighter, Inc., as of January 31. Assets SPOTLIGHTER INC. Balance Sheet At January 31 Liabilities Current Liabilities Ps 8,470 Notes Payable (long-term) 1,400 Accounts Payable Current Assets Cash $ 6,140 900 Supplies Total Current Assets 7,040 9,870 Stockholders' Equity Common Stock 1,400 11,270 Total Liabilities and Stockholders' Equity 5,030 Property, Plant, and Equipment Total Assets $ S 12,070

Answer 1

You have done mistake on recording Notes payable. it will be short term, because, it will paid within 12 months. also amount will be $4,340+$1,000 (out of 1,400, 400 paid by cash) = 5,340

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