P1-1A Analyze transactions and compute net income. On April 1, Julie Spengel established Spengel's Travel Agency. The following transactions were completed during the month. Invested $18,000 cash to start the agency. Purchased equipment for $3,000 cash, Incurred $700 of advertising costs in the Chicago Tribune, on account. Paid $900 cash for office supplies. 1. 2 Paid $750 cash for April office rent. 3. 4. 5. 6. 7. Withdrew $500 cash for personal use. 8. Paid Chicago Tribune $500 of the amount due in transaction (4). 9. Paid employees' salaries $2.000. Performed services worth $15,000: $7,000 cash is received from customers, and the balance is billed to customers on account. 10. Received $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, Owner's Capital Owner's Drawings, Revenues, and Expenses. (b) From an analysis of the owner's equity columns, compute the net income or net loss for April. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?". (a) SPENGEL'S TRAVEL AGENCY Owner's Equity Accounts Payable + Owner's Capital Valun Owner's Drawinos Revenues Expenses 1. Cash Value Accounts Receivable . Supplies + Equiomer Value 2. 2 Value 3. Value Value 4. 2 5. Value 2 6. Value + Value + Valua 7 7 Value 2 + 8. Value + . 9. Value 10 Value Value (b) Service Revenue Expenses Salaries and Wages Rent Advertising Net income . Value Value Value Value After you have completed the requirements of P1-1A, consider this additional question. 1. Assume that office rent and advertising expense changed to $700 and $500 respectively. In addition, revenues changed to $12,000 with $5,000 collected in cash and the balance on account. Show the impact of these changes in the analysis and on the net income or loss for the month. Value Vale