On April 1, Barb Massoth established American Travel Agency. The following transactions were completed during the month.

1.Invested $10,000 cash to start the agency

2. Paid

$400 cash for April office rent.

3. Purchased

equipment for $2,500 cash.

4. Incurred

$300 of advertising costs in the Chicago

Tribune, on account.

5. Paid

$600 cash for office supplies.

6. Recognized

$9,500 for services rendered: $3,000 cash is received from customers, and the

balance of $6,500 is billed to

customers on account.

7. Withdrew $200 cash for personal use

8. Paid

Chicago Tribune amount due in transaction (4).

9. Paid employees' salaries $2,200.

10. Received $4,000 in cash from customers who have previously been

billed in transaction (6).

Instructions

(a) Total assets $16,400 (b)

Net income $6,600 April

(a)give tabular analysis of the transactions using the following column headings:

Cash,Accounts Receivable, Supplies, Office Equipment,Accounts Payable, Owner's Capital,

Owner's Drawings, Revenues, and Expenses.

(b)From an analysis of the owner's equity column, compute the net income or net loss forApril