The following are the transactions of Spotlighter, Inc., for the month of January. Borrowed $3,940 from a local bank on a note due in six months. Received $4,630 cash from investors and issued common stock to them. Purchased $1,000 in equipment, paying $200 cash and promising the rest on a note due in one year. Paid $300 cash for supplies. Bought and received $700 of supplies on account. Prepare journal entries for each transaction.
The following are the transactions of Spotlighter, Inc., for the month of January. Borrowed $3,940 from a local bank on a note due in six months. Received $4,630 cash from investors and issued common stock to them. Purchased $1,000 in equipment, paying $200 cash and promising the rest on a note due in one year. Paid $300 cash for supplies. Bought and received $700 of supplies on account. Prepare journal entries for each transaction.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following are the transactions of Spotlighter, Inc., for the month of January.
- Borrowed $3,940 from a local bank on a note due in six months.
- Received $4,630 cash from investors and issued common stock to them.
- Purchased $1,000 in equipment, paying $200 cash and promising the rest on a note due in one year.
- Paid $300 cash for supplies.
- Bought and received $700 of supplies on account.
Prepare
Transcribed Image Text:No
Transaction
General Journal
Debit
Credit
1
Notes Receivable (short-term)
3,940
a.
2
b.
Dividends Payable
4,630
3
C.
Equipment
4
d.
Supplies
300
Supplies Expense
700
е.
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