On April 1, Adventures Travel Agency, Inc. commenced operations. These transactions were completed during the month:

1. Issued common shares for $24,000 cash.

2. Obtained a bank loan for $7,000.

3. Paid $11,000 cash to buy equipment.

4. Paid $1,200 cash for April office rent.

5. Paid $1,450 for supplies.

6. Purchased $600 of advertising in the Calgary Herald, on account.

7. Earned $18,000 for services performed: cash of $2,000 was received from customers, and the balance of $16,000 was billed to customers on account.

8. Paid $400 dividends to shareholders.

9. Paid the utility bill for the month, $2,000.

10. Paid Calgary Herald the amount due in transaction 6.

11. Paid $40 of interest on the bank loan obtained in transaction 2.

12. Paid employees' salaries, $6,400.

13. Received $12,000 cash from customers billed in transaction 7.

14. Paid income tax, $3,000.

Instructions

(a) Prepare a tabular analysis of the effects of the above transactions on the accounting equation.

(b) From an analysis of the retained earnings accounts (revenues, expenses, and dividends), calculate the ending balance in Common Shares, Retained Earnings, and total Shareholders' Equity.