3. A business has the following transactions: The business is started by receiving cash from an investor in exchange for common stock $20,000 The business purchases supplies on account $500 The business purchases furniture on account $2,000 The business renders services to various clients on account totaling $9,000 The business pays salaries $2,000 The business pays this months rent $3,000 The business pays for the supplies purchased on account. The business collects from one of its clients for services rendered earlier in the month $1,500.

A. Prepare a tabular analysis for each of the described transactions. Provide explanations for specific revenue and expense accounts in the Explanation column.

B. From an analysis of the Retained Earnings columns, compute the net income or net loss.