E2-31B. (Learning Objectives 2, 3: Understanding how accounting works; journalizing transactions) The first seven transactions of Portman Advertising, Inc., have been posted to the company’s accounts as follows:

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

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Cash (1) 9,000 (3) 6,500 (4) Supplies 750|(5) (2) 6,300 (6) 7,000 (5) 90 (7) 70 Accounts Payable (7) 70|(4) 750 Equipment Land 90 90 (6) 7,000 (3) 28,500 Note Payable (2) 6,300 (3) 22,000 Share Capital (1) 9,000