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

1. Borrowed $3,940 from a local bank on a note due in six months.
2. Received $4,630 cash from investors and issued common stock to them.
3. Purchased $1,000 in equipment, paying $200 cash and promising the rest on a note due in one year.
4. Paid $300 cash for supplies.
5. Bought and received $700 of supplies on account.