P1-1A On April 1, Julie Spengel established Spengels Travel Agency. The following trans- actions were completed during the month.

1. Invested $15,000 cash to start the agency.

2. Paid $600 cash for April office rent.

3. Purchased equipment for $3,000 cash.

4. Incurred $700 of advertising costs in the Chicago Tribune, on account.

5. Paid $900 cash for office supplies.

6. Performed services worth $10,000: $3,000 cash is received from customers, and the balance of $7,000 is billed to customers on account.

7. Withdrew $600 cash for personal use.

8. Paid Chicago Tribune $500 of the amount due in transaction (4).

9. Paid employees salaries $2,500.

10. Received $4,000 in cash from customers who have previously been billed in transac- tion (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.