The following are the transactions of Spotlighter, Inc., for the month of January:

a. orrowed $5,040 from a local bank on a note due in six months.
b. Received $5,730 cash from investors and issued common stock to them.
c. Purchased $2,100 in equipment, paying $750 cash and promising the rest on a note due in one year.
d. Paid $850 cash for supplies.
e. Bought and received $1,250 of supplies on account.
Prepare a classified balance sheet for Spotlighter, Inc., as of January 31

Explanation:

The presentation of the classified balance sheet is presented below:

                                           Spotlighter, Inc.

                                 Classified balance sheet

                                   For the month of January

Assets                    Amount             Liabilities & Stockholder Equity Amount

Cash                      $9,170                 Notes payable                 $6,390

Supplies                $2,100                 Account payable             $1,250

Total current assets  $11,270         Total current liabilities    $7,640

Long term Asset                               Stockholder equity

Equipment                   $2,100            Common stock          $5,730

Total long term equipment $2,100    Total owner equity    $5,730

Total Assets                         $13,370  Total liabilities

                                                             and owners equity $13,370

The computation is shown below:

For cash

= $5,040 + $5,730 - $750 - $850

= $9,170

For supplies

= $850 + $1,250

= $2,100

For notes payable

= $2,100 - $750 + $5,040

= $6,390

i just took the test and it is financing