Question
On April 1, Julie Chen established Miaolis Travel Agency. The following transactions were completed during the month. 1. Invested NT$15,000 cash to start the agency.
On April 1, Julie Chen established Miaolis Travel Agency. The following transactions were completed during the month. 1. Invested NT$15,000 cash to start the agency. 2. Paid NT$600 cash for April office rent. 3. Purchased equipment for NT$3,000 cash. 4. Incurred NT$700 of advertising costs for Facebook ads, on account. 5. Paid NT$900 cash for office supplies. 6. Performed services worth NT$10,000: NT$3,000 cash is received from customers, and the balance of NT$7,000 is billed to customers on account. 7. Withdrew NT$600 cash for personal use. 8. Paid Facebook NT$500 of the amount due in transaction (4). 9. Paid employees salaries NT$2,500. 10. Received NT$4,000 in cash from customers who have previously been billed in transaction (6).
Instructions a. Prepare a tabular analysis of the transactions using the following column headings: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Owners Capital, Owners Drawings, Revenues, and Expenses. b. From an analysis of the owners equity columns, compute the net income or net loss for April.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started