Given the transactions in M2-9 [including (a)], prepare a classified balance sheet for Spotlighter Inc. as of January 31, 2014.
In M2-9
For each of the following transactions of Spotlighter Inc. for the month of January 2014, indicate the accounts, amounts, and direction of the effects on the accounting equation. The first transaction (a) has been completed for you.
a. Borrowed $3,940 from a local bank on a note due in six months.
b. Received $4,630 cash from investors and issued shares to them.
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.