Current Attempt in Progress On April 1, Jennifer Davis established Davis's Travel Agency. The following transactions were completed during the month. 1. Invested $18,000 cash to start the agency. 2. Paid $600 cash for April office rent. 3. Purchased equipment for $2,500 cash. 4. Incurred $600 of advertising costs in the Chicago Tribune, on account. 5. Paid $600 cash for office supplies. 6. Performed services worth $11,000: $3,400 cash is received from customers, and the balance of $7,600 is billed to customers on account. 7. Withdrew $400 cash for personal use. 8. Paid Chicago Tribune $400 of the amount due in transaction (4). 9. Paid employees' salaries $2,200. 10. Received $4,600 in cash from customers who have previously been billed in transaction (6). (b) From an analysis of the owner's equity columns, compute the net income or net loss for April. DAVIS'S TRAVEL AGENCY Income Statement $ $ $ Mary Smith opened a law office on July 1, 2022. On July 31, the balance sheet showed Cash $5,000, Accounts Receivable $1,500, Supplies $ 400, Equipment $5,500, Accounts Payable $3.500, and Owner's Capital $ 8,900. During August, the following transactions occurred. 1. Collected $ 1.200 of accounts receivable. 2. Paid $2,400 cash on accounts payable. 3. Recognized revenue of $ 6,800 of which $1,500 is collected in cash and the balance is due in September. 4. Purchased additional equipment for $ 1,500, paying $ 300 in cash and the balance on account. 5. Paid salaries $ 1,700, rent for August $1,000, and advertising expenses $ 250. 6. Withdrew $ 700 in cash for personal use. 7. Received $1,000 from Standard Federal Bank-money borrowed on a note payable. 8. Incurred utility expenses for month on account $ 170. MARY SMITH, ATTORNEY AT LAW Liabilities Notes Payable + Accounts Payable $ 0 3,500 0 (2,400) 0 0 0 1,200 0 0 0 0 0 0 O 1,000 0 170 $ 1,170 $ 2,300