On April 1, Jenny Russo established Matrix Travel Agency. The following transactions were completed during the month.
1.Stockholders invested $10,000 cash in exchange for stock.
2.Paid $400 cash for April office rent
3.Purchased office equipment for $200 cash
4.Incurred $300 cash of advertising costs in the Chicago Tribune, on account
5.Paid $600 cash for office supplies
6.Earned $9500 for services rendered: $3000 cash is received from customers, and the balance of $6500 is billed to customers on account.
7.Paid $200 cash dividend
8.Paid Chicago Tribune amount due in transaction 4
9.Paid employees salaries $2200
10.Received $4000 in cash from customers who have previously been billed in transaction 6
Instructions
(a) Prepare a tubular analysis of the transactions using the following column headings: Cash, Accounts Receivable, Supplies, Office Equipment, Accounts Paybale, Common Stock and Retained Earnings.
(b) From an analysis of the column Retained Earnings, compute the net income or net loss for April