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On April 1, Ivanhoe Travel Agency Inc began operations. The following transactions were completed during the months 1. Issued common shares for $5,800 cash. 2.

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On April 1, Ivanhoe Travel Agency Inc began operations. The following transactions were completed during the months 1. Issued common shares for $5,800 cash. 2. Obtained a bank loan for $20,800. 3. Paid $11,400 cash to buy equipment. 4. Paid $1,600 cash for April office rent. 5. Paid $1,850 for supplies. 6. Purchased $640 of newspaper advertising on account. Earned $20,000 for services performed: cash of $2,400 was received from customers, and the balance was billed to 7. customers on account. 8. Declared and paid $440 of dividends to shareholders. 9. Paid the utility bill for the month, $2,400. 10. Paid the amount due for newspaper advertising in transaction 6. 11. Paid $140 of interest on the bank loan obtained in transaction 2. 12. Paid employees'salaries, $6,800. 13. Received $12,800 cash from customers billed in transaction 7 . 14. Paid income tax, $1,900. Prepare an equation analysis of the effects of the above transactions on the accounting equation. (If a transaction results in a decrease in Assets, Liabilities or Shareholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 3.16 for example.)

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