The first seven transactions of Everett Advertising, Inc., have been posted to the company€™s accounts as follows:


Requirement
Prepare the journal entries that served as the sources for the seven transactions. Include an explanation for each entry. As Everett moves into the next period, how much cash does the business have? How much does Everett owe in totalliabilities?

Transcribed Image Text:

Cash Supplies Equipment Land (1) 9,800 (3) 4,000 (4) 400 (5) 110 6 5,300 (2) 7,000 6) 5300 (5) 1101 (7)150 (3) 32,000 Accounts Payable Note Payable Common Stock (7) 150 (4) 400 (2) 7,000 (3) 28,000 (1) 9,800