On April 1, Bill Taylor established Taylor Made Travel Agency. The following transactions were completed during...

 

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On April 1, Bill Taylor established Taylor Made Travel Agency. The following transactions were completed during the month. 1. 2 3. 3-56 Stockholders invested $8,000 cash in the business in exchange for common stock. Paid $400 cash for April office rent. Purchased equipment for $2,500 cash. Incurred $300 of advertising costs in the Chicago Tribune, on account. Paid $500 cash for office supplies. Performed services worth $8,500: $2,000 cash is received from customers, and the balance of $6,500 is billed to customers on account. 5. 6. 7. Declared and paid a $200 cash dividend. 8. Paid Chicago Tribune amount due in transaction (4). 9. Paid employees' salaries $2,000. 10. Received $5,700 in cash from customers billed previously in transaction (6). Instructions (a) (b) Prepare a tabular analysis of the transactions using the following column headings: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Common Stock, and Retained Earnings (with separate columns for Revenues, Expenses, and Dividends.) Include margin explanations for any changes in Retained Earnings. From an analysis of the owner's equity columns, compute the net income or net loss for April. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" . (a) TAYLOR MADE TRAVEL AGENCY Value + ? Accounts Accounts Common Cash + Receivable + Supplies + Equipment = Payable + Stock + Revenues - 1. Value Value Value = ? 2. ? Value ? 3. Value ? ? Stockholders' Equity Retained Earnings Expenses - Dividends = = 6. 4. ? Value + ? Value ? ? Value ? + ? + ? = ? + ? Value - ? Value Value ? ? 6. Value Value Value ? + ? + ? + ? = ? + ? ? ? 7. Value Value ? + ? + ? + ? = ? + ? ? - ? - ? 8. Value Value ? + ? + ? + ? = ? + ? + ? 9. Value ? + ? + ? + ? = ? + ? ? 10 Value Value ? + ? + ? + ? ? + ? + ? - ? Value ? ? - ? ? - ? (b) Service Revenue Value Expenses: Salaries and wages expense Value Rent expense Value Advertising expense Value Net income ? ? After you have completed the requirements of P1-1B, consider this additional question. 1. Assume that office rent and advertising expense changed to $800 and $600 respectively. In addition, revenues changed to $12,000 with $5,000 collected in cash and the balance on account. Show the impact of these changes in the analysis and on the net income or loss for the month. On April 1, Bill Taylor established Taylor Made Travel Agency. The following transactions were completed during the month. 1. 2 3. 3-56 Stockholders invested $8,000 cash in the business in exchange for common stock. Paid $400 cash for April office rent. Purchased equipment for $2,500 cash. Incurred $300 of advertising costs in the Chicago Tribune, on account. Paid $500 cash for office supplies. Performed services worth $8,500: $2,000 cash is received from customers, and the balance of $6,500 is billed to customers on account. 5. 6. 7. Declared and paid a $200 cash dividend. 8. Paid Chicago Tribune amount due in transaction (4). 9. Paid employees' salaries $2,000. 10. Received $5,700 in cash from customers billed previously in transaction (6). Instructions (a) (b) Prepare a tabular analysis of the transactions using the following column headings: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Common Stock, and Retained Earnings (with separate columns for Revenues, Expenses, and Dividends.) Include margin explanations for any changes in Retained Earnings. From an analysis of the owner's equity columns, compute the net income or net loss for April. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" . (a) TAYLOR MADE TRAVEL AGENCY Value + ? Accounts Accounts Common Cash + Receivable + Supplies + Equipment = Payable + Stock + Revenues - 1. Value Value Value = ? 2. ? Value ? 3. Value ? ? Stockholders' Equity Retained Earnings Expenses - Dividends = = 6. 4. ? Value + ? Value ? ? Value ? + ? + ? = ? + ? Value - ? Value Value ? ? 6. Value Value Value ? + ? + ? + ? = ? + ? ? ? 7. Value Value ? + ? + ? + ? = ? + ? ? - ? - ? 8. Value Value ? + ? + ? + ? = ? + ? + ? 9. Value ? + ? + ? + ? = ? + ? ? 10 Value Value ? + ? + ? + ? ? + ? + ? - ? Value ? ? - ? ? - ? (b) Service Revenue Value Expenses: Salaries and wages expense Value Rent expense Value Advertising expense Value Net income ? ? After you have completed the requirements of P1-1B, consider this additional question. 1. Assume that office rent and advertising expense changed to $800 and $600 respectively. In addition, revenues changed to $12,000 with $5,000 collected in cash and the balance on account. Show the impact of these changes in the analysis and on the net income or loss for the month.