PI-1 B On April 1, Jenny Russo established Matrix Travel Agency. The following transactions were completed during the month.

1. Stockholders invested $10,000 cash in exchange for 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 $9,500 for services rendered: $3,000 cash is received from customers, and the balance of $6,500 is billed to customers on account.

7. Paid $200 cash dividend.

8. Paid Chicago Tribune amount due in transaction 4.

9. Paid employees’ salaries $2,200.

10. Received $4,000 in cash from customers who have previously been billed in transaction 6.

Instructions

(a) Prepare a tabular analysis of the transactions using the following 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.