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Cash					Supplies					Land					Equipment
(1)	8,400	(4)	11,000		(3)	1,100	(5)	60		(4)	34,000				(7)	3,400
(2)	10,500	(6)	220
(5)	60	(7)	3,400

Accounts Payable					Note Payable					Common Stock
(6)	220	(3)	1,100				(2)	10,500				(1)	8,400
							(4)	23,000

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

Begin by recording the journal entries; start with transaction (1). (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

Journal Entry
	Accounts and Explanations	Debit	Credit
1.	Cash	10500
	Paid cash on account.

Now record the journal entry for transaction (2).

Journal Entry
	Accounts and Explanations	Debit	Credit

2.

Now record the journal entry for transaction (3).

Journal Entry
	Accounts and Explanations	Debit	Credit
3.

Now record the journal entry for transaction (4).

Journal Entry
	Accounts and Explanations	Debit	Credit

4.

Now record the journal entry for transaction (5).

Journal Entry
	Accounts and Explanations	Debit	Credit

5.

Now, record the journal entry for transaction (6).

Journal Entry
	Accounts and Explanations	Debit	Credit

6.

Finally, record the journal entry for transaction (7).

Journal Entry
	Accounts and Explanations	Debit	Credit
7.

As

BurrowsBurrows

moves into the next period, how much cash does the business have?

The company's cash balance is $

.

How much does

BurrowsBurrows

owe in total liabilities?

The company owes $

.

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