Answer:
<u>Classified balance sheet for Spotlighter, Inc., as of January 31.</u>
<u>Assets</u>
Non-Current Assets
Equipment $1,500
Total Non-current assets $1,500
Current Assets
Supplies $1,500
Cash $8,570
Total current assets $10,070
Total Assets $11,570
<u>Equity and Liabilities</u>
Equity
Common Stock $5,130
Total Equity $5,130
Liabilities
Accounts Payable $950
Note Payable $5,490
Total Liabilities $6,440
Total Equity and Liabilities $11,570
Explanation:
Step 1 :
First Record the Transactions as follows
J1
Cash $4,440 (debit)
Note Payable $4,440 (credit)
J2
Cash $5,130 (debit)
Common Stock $5,130 (credit)
J3
Equipment $1,500 (debit)
Cash $450 (credit)
Note Payable $1,050 (credit)
J4
Supplies $550 (debit)
Cash $550 (credit)
J5
Supplies $950 (debit)
Accounts Payable $950 (credit)
Step 2 :
Post the Account Balances to the Trial Balance as follows
Debit Credit
Cash ($4,440 + $5,130 - $450 - $550) $8,570
Note Payable ( $4,440 + $1,050) $5,490
Equipment $1,500
Supplies ($550 + $950) $1,500
Accounts Payable $950
Common Stock $5,130
Totals $11,570 $11,570
Step 3 :
After the Trial Balance has been prepared, Financial Statements can then be prepared using the list of Account Balances. Financial Statement include the Balance sheet that has been required for this question.
