Record adjustments and prepare financial statements. (LO 1, 2, 3, 4) Transactions for Pops Company for 2007 were:

1. The owners started the business as a corporation by contributing \(\$ 30,000\) cash in exchange for common stock.

2. The company purchased office equipment for \(\$ 8,000\) cash and land for \(\$ 15,000\) cash.

3. The company earned a total of \(\$ 22,000\) of revenue of which \(\$ 16,000\) was collected in cash.

4. The company purchased \(\$ 890\) worth of supplies for cash.

5. The company paid \(\$ 6,000\) in cash for other operating expenses.

6. At the end of the year, the company owed employees \(\$ 2,480\) for work that the employees had done in 2007 . The next payday, however, is not until January 4, 2008.
7. Only \(\$ 175\) worth of supplies was left at the end of the year.
The office equipment was purchased on January 1 and is expected to last for 8 years (straight-line depreciation, no salvage value).
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a. Use an accounting equation worksheet to record the transactions that occurred during 2007.

b. Record any needed adjustments at year-end.

c. Prepare all four financial statements for the year ended December 31, 2007 (balance sheet at December 31, 2007).