P1.1A (LO 3, 4) On April 1, Julie Spengel established Spengel's Travel Agency. The following trans- actions were complet

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P1 1a Lo 3 4 On April 1 Julie Spengel Established Spengel S Travel Agency The Following Trans Actions Were Complet 1 (43.26 KiB) Viewed 10 times

P1.1A (LO 3, 4) On April 1, Julie Spengel established Spengel's 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 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, Reve- nues, and Expenses. b. From an analysis of the owner's equity columns, compute the net income or net loss for April.