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On April 1, Wonder Travel Agency Inc. was established. These transactions were completed during the month. Stockholders invested $30,000 cash in the company in
On April 1, Wonder Travel Agency Inc. was established. These transactions were completed during the month. Stockholders invested $30,000 cash in the company in exchange for common stock. 1. 2 Paid $900 cash for April office rent. 3. Purchased office equipment for $3,400 cash. 4. Purchased $200 of advertising in the Chicago Tribune, on account. 5. 6. Paid $500 cash for office supplies. Performed services worth $12,000. Cash of $3,000 is received from customers, and the balance of $9,000 is billed to customers on account. 7. Paid $400 cash dividends. 8. Paid Chicago Tribune amount due in transaction (4). 9. Paid employees' salaries $1,800. 10. Received $9,000 in cash from customers billed previously in transaction (6). (a) -Your answer is partially correct. Prepare a tabular analysis of the above transactions. Include margin explanations for any changes in Retained Earnings. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' 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 3-4 for example.)
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