P1-1A On April 1, Julie Spengel established Spengelâs TravelAgency. The following trans- actions were completed during themonth.
1. Invested $15,000 cash to start the agency.
2. Paid $600 cash for April office rent.
3. Purchased equipment for $3,000 cash.
4. Incurred $700 of advertising costs in the Chicago Tribune, onaccount.
5. Paid $900 cash for office supplies.
6. Performed services worth $10,000: $3,000 cash is receivedfrom customers, and the balance of $7,000 is billed to customers onaccount.
7. Withdrew $600 cash for personal use.
8. Paid Chicago Tribune $500 of the amount due in transaction(4).
9. Paid employeesâ salaries $2,500.
10. Received $4,000 in cash from customers who have previouslybeen billed in transac- tion (6).
Instructions
(a) Prepare a tabular analysis of the transactions using thefollowing column headings: Cash, Accounts Receivable, Supplies,Equipment, Accounts Payable, Ownerâs Capital, Ownerâs Drawings,Revenues, and Expenses.
(b) From an analysis of the ownerâs equity columns, compute thenet income or net loss for April.
P1-1A On April 1, Julie Spengel established Spengelâs TravelAgency. The following trans- actions were completed during themonth.
1. Invested $15,000 cash to start the agency.
2. Paid $600 cash for April office rent.
3. Purchased equipment for $3,000 cash.
4. Incurred $700 of advertising costs in the Chicago Tribune, onaccount.
5. Paid $900 cash for office supplies.
6. Performed services worth $10,000: $3,000 cash is receivedfrom customers, and the balance of $7,000 is billed to customers onaccount.
7. Withdrew $600 cash for personal use.
8. Paid Chicago Tribune $500 of the amount due in transaction(4).
9. Paid employeesâ salaries $2,500.
10. Received $4,000 in cash from customers who have previouslybeen billed in transac- tion (6).
Instructions
(a) Prepare a tabular analysis of the transactions using thefollowing column headings: Cash, Accounts Receivable, Supplies,Equipment, Accounts Payable, Ownerâs Capital, Ownerâs Drawings,Revenues, and Expenses.
(b) From an analysis of the ownerâs equity columns, compute thenet income or net loss for April.
