Question

Book Show Me How apa Tours Co, is a travel agency. The nine transactions recorded by Napa Tours during April 2018, its first month of operations, are indie sthe following T accounts: Cash Equipment Dividends (1) 32, 400(2) 2,250 (7) 12,950K3) 4,200 4) 3,550 (6) 9,700 (9) 3,200 (3) 23,300 9) 3,200 Accounts Payable Service Revenue (5) 17,500 7) 12,950 (6) 9,700 (3) 19,100 5) 17,500 Common Stock Operating Expenses (2) 2,250 (8) 1,300 (4) 3,550 (8) 1,300 (1) 32,400 trial balsne List all the accounts in the order of Assets, Lisbilities, Stockholders' equity, Revenues, and Expenses Pisce the amounts in the proper columns, if an entry is not required in an smount box, leave it blank laps Tours Co

Answer 1

a.

Napa Tours Co.
Unadjusted Trial Balance
April 30, 2018
Accounts	Debit	Credit
Cash	22450
Accounts receivable	4550
Supplies	950
Equipment	23300
Accounts payable		9400
Common stock		32400
Dividends	3200
Service revenue		17500
Operating expenses	4850
Totals $	59300	59300

b. Net income: $12650

Net income = Service revenue - Operating expenses = $17500 - $4850 = $12650.