On April 1 Laura Seall established Seall Travel Agency, Inc. These transactions were completed during the month:

Question:

1. Laura invested $\$ 20,000$ cash in the company in exchange for common stock.

2. Paid $\$ 400$ cash for April office rent.

3. Purchased office equipment for $\$ 2,500$ cash.

4. Incurred $\$ 300$ of advertising costs in the Chicago Tribune, on account.

5. Paid $\$ 600$ cash for office supplies.

6. Earned $\$ 9,000$ for services rendered: Cash of $\$ 1,000$ is received from customers, and the balance of $\$ 8,000$ is billed to customers on account.

7. Paid $\$ 200$ cash dividends.

8. Paid Chicago Tribune amount due in transaction (4).

9. Paid employees' salaries, $\$ 1,200$.

10. Received $\$ 8,000$ in cash from customers who have previously been billed in transaction (6).

\section*{Instructions}

(a) Prepare a tabular analysis of the transactions using these column headings: Cash, Accounts Receivable, Supplies, Office Equipment, Accounts Payable, Common Stock, and Retained Earnings.

(b) From an analysis of the column Retained Earnings, compute the net income or net loss for April.

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