The following are the transactions of Spotlighter Inc for th

The following are the transactions of Spotlighter, Inc., for the month of January: a. Borrowed $4,440 from a local bank on a note due in six months. b. Received $5,130 cash from investors and issued common stock to them. c. Purchased $2,000 in equipment, paying $700 cash and promising the rest on a note due in one year. d. Paid $800 cash for supplies. e. Bought and received $1,200 of supplies on account. Prepare journal entries for each transaction.

Solution

Cash 4440      Notes payable 4440 Cash 5130      Contributed capital 5130 Equipment 2000      Cash 700      Notes payable 1300 Supplies 800      Cash 800 Supplies 1200      Accounts payable 1200