Part 1: Julie Spengel established Spengel’s Travel Agency Office. The following transactions were completed during 2022: 

1. On April 1, Julie Invested $15,000 cash to start the agency. 
2. On April 7, Julie paid $600 cash for April office rent. 
3. On April 13, Julie purchased equipment for $3,000 cash. 
4. On April 22, Julie Incurred $700 of advertising costs in the Chicago Tribune, on account. 
5. On April 26, Julie paid $900 cash for office supplies. 
6. On May 4, Julie performed services worth $10,000: $3,000 cash is received from customers, and the balance of $7,000 is billed to customers on account. 
7. On May 10, Julie withdrew $600 cash for personal use. 
8. On May 13, Julie paid Chicago Tribune $500 of the amount due in transaction (4). 
9. On May 27, Julie paid employees’ salaries $2,500. 
10. On June 4, Julie received $4,000 in cash from customers who have previously been billed in transaction (6). 

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. B.  Journalize the transactions.

1. Post to the ledger accounts.
2. Prepare a trial balance. 
3. Prepare the income statement, owner’s equity statement, classified balance sheet, and statement of cash flows.