Question
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.
WALKER'S TRAVEL AGENCY Income Statement $ $ > $
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