Spotlighter Company, a new sole proprietorship owned and managed by Ryan Terlecki, sells lighting fixtures. For each

Question:

Spotlighter Company, a new sole proprietorship owned and managed by Ryan Terlecki, sells lighting fixtures. For each of the following transactions for the month of January 2009 (the first month of operations), indicate the accounts, amounts, and direction of the effects on the accounting equation.

A sample is provided.

a. (Sample) Borrowed $3,940 from a local bank on a note due in six months.

b. Received $4,630 in cash from Ryan Terlecki.

c. Purchased $920 in equipment, paying $190 cash and promising the rest on a note due in one year.

d. Paid $372 cash for supplies.

e. Bought $700 of supplies on account.