P1-1B, Analyze transactions and compute net income.
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P1-1B, Analyze transactions and compute net income.
On April 1, Vince Morelli established Vince’s Travel Agency. The following transactions were completed during the month.
1. Invested cash to start the agency. $15 000 7. Withdrew cash for personal use $500
2. Paid cash for April office rent $600 8. Paid Chicago Tribune of the amount due in transaction (4). $500
3. Purchased office equipment for cash $3 000 9. Paid employee salaries $2 500
4. Incurred advertising costs in the Chicago Tribune on account $700 "10. Received cash from customers who have previously been
billed in transaction (6)." $4 000
5. Paid cash for office supplies $800
6. Earned $10,000 for services rendered: $10 000
Cash received from customers is $3 000
and the balance billed to customers on account. $7 000
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.
Assets = Liabilities + Owner's Equity
Transaction Number: Cash + Accounts Receivable + Supplies + Equipment = Accounts Payable + Owner's Capital - Owner's Drawings + Revenues - Expenses
[Solved] P1-1B, Analyze transactions and compute net income.
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- Submitted On 11 Sep, 2017 11:31:23
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