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.