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P3-1A On April 1 Flint Hills Travel Agency Inc. was established. These transactions were completed during the month. 1. Stockholders invested $25,000 cash in the company in exchange for common stock. 2. Paid $900 cash for April office rent. 3. Purchased office equipment for $2,800 cash. 4. Purchased $200 of advertising in the Chicago Tribune, on account. 5. Paid $500 cash for office supplies. 6. Earned $10,000 for services provided: Cash of $1,000 is received from customers, and the balance of $9,000 is billed on customers on account. 7. Paid $400 cash dividends. 8. Paid Chicago Tribune amount due in transaction (4). 9. Paid employees' salaries $1,200. 10. Received $9,000 in cash from customers billed previously in transaction (6). a) Prepare a tabular analysis of the transactions using these column headings: Cash, Accounts Receivable, Supplies, Office 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. b) From an analysis of the Retained Earnings columns, compute the net income or net loss for April.
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