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On April 1, Michelle Walker established Walkers Travel Agency. The following transactions were completed during the month. 1. Invested $15,000 cash to start the agency.

On April 1, Michelle Walker established Walkers Travel Agency. The following transactions were completed during the month.

1. Invested $15,000 cash to start the agency.
2. Paid $500 cash for April office rent.
3. Purchased equipment for $3,600 cash.
4. Incurred $600 of advertising costs in the Chicago Tribune, on account.
5. Paid $500 cash for office supplies.
6. Performed services worth $10,000: $2,800 cash is received from customers, and the balance of $7,200 is billed to customers on account.
7. Withdrew $600 cash for personal use.
8. Paid Chicago Tribune $400 of the amount due in transaction (4).
9. Paid employees' salaries $2,800.
10. Received $4,200 in cash from customers who have previously been billed in transaction (6).

Complete the tabular analysis of the transactions. (If a transaction results in a decrease in Assets, Liabilities or Owner's 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 1-8 for example.)

WALKERS TRAVEL AGENCY

Assets

=

Liabilities

+

Owners Equity

Cash

+

Accounts Receivable

+

Supplies

+

Equipment

=

Accounts Payable

+

Owners Capital

Owners Drawings

+

Revenues

Expenses

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

total =

From an analysis of the owners equity columns, compute the net income or net loss for April.

image text in transcribed

WALKER'S TRAVEL AGENCY Income Statement $ $ > $

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