Based on the transactions below of Terry Company please complete the following tasks:

1. Prepare T Accounts for Each Transaction

2. Prepare Journal Entries for Each Transaction

3. Prepare the Trial Balance as a result of the transactions

4. Prepare the income statement

5. Prepare the statement of Retained Earnings (Beg RE is $0)

6. Prepare the Balance Sheet

Transactions:

Oct. 1 Terry purchased computer equipment for $8,400, paying $1,000 now, and issuing a promissory note for the balance; the note is due in monthly installments of $500 plus interest at 10% on the unpaid balance.

Oct 8 Terry records service revenue earned: $3,200 from cash customers; $12,000 for customers billed for completed services.

Oct 22 Common stock is issued for land with a fair value of $35,000.

October 31 An invoice for $1,200 is received from the company's advertising agency for ads that were run on radio and TV during October; the invoice is due in 30 days.