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Business, 16.06.2020 17:57 LlayahHarbin
On April 1, Julie Spengel established Spengel's Travel Agency. The following transactions were completed during the month.
1. Invested $18,000 cash to start the agency.
2. Paid $600 cash for April office rent.
3. Purchased equipment for $2,500 cash.
4. Incurred $600 of advertising costs in the Chicago Tribune, on account.
5. Paid $600 cash for office supplies.
6. Performed services worth $11,000: $3,400 cash is received from customers, and the balance of $7,600 is billed to customers on account.
7. Withdrew $400 cash for personal use.
8. Paid Chicago Tribune $400 of the amount due in transaction (4).
9. Paid employees' salaries $2,200.
10. Received $4,600 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.
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On April 1, Julie Spengel established Spengel's Travel Agency. The following transactions were compl...
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