Chapter 2 Homework Saved Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. 1.4 3 points Required: The following are the transactions of Spotlighter, Incorporated, for the month of January. For each transaction, indicate the accounts, amounts, and direction of the effects on the accounting equation. A sample is provided. (Enter any decreases to account balances with a minus sign.) a. (Sample) Borrowed $4,940 from a local bank on a note due in six months. b. Received $5,630 cash from investors and issued common stock to them. c. Purchased $2,000 in equipment, paying $700 cash and promising the rest on a note due in one year. d. Paid $800 cash for supplies. e. Bought and received $1,200 of supplies on account. Answer is complete but not entirely correct. Assets Liabilities a. Cash b. Cash 4,940 5,630 = Notes Payable (short-term) = C. Cash (700) Notes Payable (short-term) C. Equipment d. Cash d. Supplies e. Supplies 1,300 = 800 = (800) (1,200) = Accounts Payable 4,940 + + Common Stock 2,000 + + + + 1,200 + Stockholders' Equity 5,630