The following are the transactions of Spotlighter, Incorporated, 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. Required:
The following are the transactions of Spotlighter, Incorporated, 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. Required:
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 33P
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The following are the transactions of Spotlighter, Incorporated, 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.
Required:
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