$20,000 On January 1 Picture Perfect was established. These transactions were completed during the month. 1. Stockholders invested Cash cash in the company in exchange for common stock. 1. $20,000+ 2. Paid $1,200 cash for April office rent. 2. (1,200) + 3. Purchased office equipment for $2,500 cash. 3. (2,500) + + + + + 4. Purchased $400 of advertising in the Chicago Tribune, on account. 4. +1 5. Paid $650 cash for office supplies. 5. 6. Eamed $15,000 customers, and the balance of for services provided: Cash of $10,000 $5,000 is received from 6. is billed to customers on account. 7. Paid $500 cash dividends. 7. 8. Paid Chicago Tribune amount due in transaction (4). 9. Paid employees' salaries 8. Accounts Assets Stockholders' Equity Retained Earnings Expenses Dividends Explanations Liabilities Accounts Common Stock $20,000+ + Revenues Receivable Supplies Equipment Payable 2,500= 400 (1,200): Rent Expense (400): Advertising Expense $3,500 9. 10. Received $10,000 transaction (6). in cash from customers who have previously been billed in 10. + $16,300 + $2,500 $400 $20,000 + SO ($1,600) $18,800 $18,800 Instructions: (a) Prepare a tabular analysis of the transactions using these column headings: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Common Stock, and Retained Earnings (with separate columns for Revenues, Expenses, and Dividends). Include margin explanations for any changes in Retained Earnings. (b) From an analysis of the Retained Earings columns, compute the net income or net loss for January. Account title Or Amount Title Expenses Account title Amount Less: Title Net income Amount Amount Formula Account title Amount Account title Amount Formula Net income Formula