On April 1, Bill Taylor established Taylor Made Travel Agency. The following trans- actions were completed during the month. 1. Stockholders invested $8,000 cash in the business in exchange for common stock. 2. Paid $400 cash for April office rent. 3. Purchased office equipment for $2,500 cash. 4. Incurred $300 of advertising costs in the Chicago Tribune, on account.5.Paid $500 cash for office supplies. 6. Performed services worth $8,500: $2,000 cash is received from customers, and the balance of $6,500 is billed to customers on account. 7. Declared and paid a $200 cash dividend. 8. Paid Chicago Tribune amount due in transaction (4). 9. Paid employees salaries $2,000. 10. Received $5,700 in cash from customers billed previously in transaction (6).

Instructions (a) Prepare a tabular analysis of the transactions using the following column headings: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Common Stock, and Retained Earnings (with separate columns for Revenues, Expenses, and Divi- dends). Include margin explanation for any changes in Retained Earnings. (b) From an analysis of the Retained Earnings columns, compute the net income or net loss for April.