Return to questionItem 5Item 5 1.66 points For each of the following transactions of Spotlighter, Inc., for the month of January, 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 $5,740 from a local bank on a note due in six months. b. Received $6,430 cash from investors and issued common stock to them. c. Purchased $2,800 in equipment, paying $1,100 cash and promising the rest on a note due in one year. d. Paid $1,200 cash for supplies. e. Bought and received $1,600 of supplies on account.

The accounting equation is shown below.

Explanation:

Particular       Assets    =            Liabilities          +           Stockholder equity

a. Cash   $5,740                    Note payable  $5,740

b. Cash    $6,430                                                                Common stock $6,430

c. Cash - $1,100

Equipment $2,800               Note payable  $1,700

d. Supplies $1,200

Cash  - $1,200

e. Supplies $1,600            Account payable $1,600

Total        $15,470                      $9,040                                   $6,430

The positive or no signs reflects the increase in accounts while the negative signs reflects the decrease in accounts

it's d. out with the planting and harvest of the crops.