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