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