Problem 1-01A a-b On April 1, Dorothy Taylor established Taylor's Travel Agency. The following transactions were completed during the month. 1. 2. 3. 4. 5. Invested $16,000 cash to start the agency. Paid $700 cash for April office rent. Purchased equipment for $3,400 cash. Incurred $800 of advertising costs in the Chicago Tribune, on account. Paid $600 cash for office supplies. Performed services worth $10,000: $3,200 cash is received from customers, and the balance of $6,800 is billed to customers on account. Withdrew $600 cash for personal use. Paid Chicago Tribune $600 of the amount due in transaction (4). Paid employees' salaries $2,600. Received $3,800 in cash from customers who have previously been billed in transaction (6). 6. 7. 8. 9. 10. 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 for the particular Asset, Liability or Equity item that was reduced. See Illustration 1-8 for example.) Assets TAYLOR'S TRAVEL AGENCY Liabilities Accounts Equipment = Payable Accounts Receivable Cash Owner's Equity Owner's Drawings Revenues Owner's Capital + + Supplies + + - Expenses 1. $ $ 2. 3. 4. From an analysis of the owner's equity columns, compute the net income or net loss for Apri TAYLOR'S TRAVEL AGENCY Income Statement $ $ $