The following are the transactions of Spotlighter, Inc., for the month of January:

a. orrowed $5,040 from a local bank on a note due in six months.

b. Received $5,730 cash from investors and issued common stock to them.

c. Purchased $2,100 in equipment, paying $750 cash and promising the rest on a note due in one year.

d. Paid $850 cash for supplies.

e. Bought and received $1,250 of supplies on account.

Prepare a classified balance sheet for Spotlighter, Inc., as of January 31

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Business

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23 August, 10:00

The following are the transactions of Spotlighter, Inc., for the month of January:

a. orrowed $5,040 from a local bank on a note due in six months.

b. Received $5,730 cash from investors and issued common stock to them.

c. Purchased $2,100 in equipment, paying $750 cash and promising the rest on a note due in one year.

d. Paid $850 cash for supplies.

e. Bought and received $1,250 of supplies on account.

Prepare a classified balance sheet for Spotlighter, Inc., as of January 31

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House · Answer 1

The presentation of the classified balance sheet is presented below:

Spotlighter, Inc.

Classified balance sheet

For the month of January

Assets Amount Liabilities & Stockholder Equity Amount

Cash $9,170 Notes payable $6,390

Supplies $2,100 Account payable $1,250

Total current assets $11,270 Total current liabilities $7,640

Long term Asset Stockholder equity

Equipment $2,100 Common stock $5,730

Total long term equipment $2,100 Total owner equity $5,730

Total Assets $13,370 Total liabilities

and owners equity $13,370

The computation is shown below:

For cash

= $5,040 + $5,730 - $750 - $850

= $9,170

For supplies

= $850 + $1,250

= $2,100

For notes payable

= $2,100 - $750 + $5,040

= $6,390