Question - On April 1, DeDonder Travel Agency Inc. was established. These transactions were completed during the month.
1. Stockholders invested $28,655 cash in the company in exchange for common stock.
2. Paid $818 cash for April office rent.
3. Purchased office equipment for $3,036 cash.
4. Purchased $205 of advertising in the Chicago Tribune, on account.
5. Paid $332 cash for office supplies.
6. Performed services worth $12,892. Cash of $3,096 is received from customers, and the balance of $9,796 is billed to customers on account.
7. Paid $456 cash dividends.
8. Paid Chicago Tribune amount due in transaction (4).
9. Paid employees' salaries $1,300.
10. Received $9,796 in cash from customers billed previously in transaction (6).
(a) Prepare a tabular analysis of the above transactions.
(b) From an analysis of the Retained Earnings columns, compute the net income or net loss for April.