For each of the following transactions of Spotlighter Inc. for the month of January 2010, indicate the accounts, amounts, and direction (+ for increase and − for decrease) of the effects on the accounting equation. A sample is provided. a. (Sample) Borrowed $8,460 from a local bank on a note due in six months. b. Received $4,930 cash from investors and issued stock to them. c. Purchased $1,610 in equipment, paying $190 cash and promising the rest on a note due in one year. d. Paid $597 cash for supplies. e. Bought $580 of supplies on account. Assets = Liabilities + Stockholders' Equity a. Cash +8,460 Notes payable +8,460 b. Cash +4,930 Contributed capital +4,930 c. Cash -190 Notes payable +1,420 Equipment +1,610 d. Cash -597 Supplies +597 e. Supplies +580 Accounts payable +580

For each of the following transactions of Spotlighter Inc. for the month of January 2010, indicate the accounts, amounts, and direction (+ for increase and − for decrease) of the effects on the accounting equation. A sample is provided.

 

a.	(Sample) Borrowed $8,460 from a local bank on a note due in six months.
b.	Received $4,930 cash from investors and issued stock to them.
c.	Purchased $1,610 in equipment, paying $190 cash and promising the rest on a note due in one year.
d.	Paid $597 cash for supplies.
e.	Bought $580 of supplies on account.

  

	Assets		=	Liabilities		+	Stockholders' Equity
a.	Cash	+8,460		Notes payable	+8,460
b.	Cash	+4,930					Contributed capital	+4,930
c.	Cash	-190		Notes payable	+1,420
	Equipment	+1,610
d.	Cash	-597
	Supplies	+597
e.	Supplies	+580		Accounts payable	+580