Question

Problem 1-01A a-b On April 1, Sharon Lee established Lee's Travel Agency. The following transactions were completed during the month. Invested $14,000 cash to start the agency. 1. Paid $500 cash for April office rent. 2. Purchased equipment for $2,000 cash. 3. Incurred $900 of advertising costs in the Chicago Tribune, on account. 4. Paid $900 cash for office supplies. 5. Performed services worth $11,000: $3,500 cash is received from customers, and the balance of $7,500 is billed to customers on account. Withdrew $400 cash for personal use. 6. 7. Paid Chicago Tribune $700 of the amount due in transaction (4). 8. Paid employees' salaries $2,900. 9. Received $4,500 in cash from customers who have previously been billed in transaction (6). 10. Z Your answer is partially correct. Try again. Complete the tabular analysis of the transactions. (If a transaction results in a decrease in Assets, Liabilities or Owner's Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced. See Illustration 1-8 for example.) LEE'S TRAVEL AGENCY Liabilities Owner's Equity Assets Owner's Capital Owner's Accounts Accounts Cash Receivable Supplies Equipment Payable Drawings Revenues Expenses 14000 14000 1. 2. -500 500 2000 3. -2000 4. 900 900 5. 900 006- 3500 7500 6. 7. -400 400 -700 8. -700 -2900 -2900 9. -4500 10. 5400 2 Your answer is partially correct. Try again.

Answer 1

Lets Travel Agency Owners' Equity Liabilities Assets Sr.No. Owners' Owners' Accounts Accounts + Equipment = Cash Supplies Revenues Expenses Capital $14,000 Receivable Payable Drawings $14,000 + -$500 -$500 -$2,000 + $2,000 3 $900 -%24900 4 -$900 |+ $900 + $3,500 -$400 + $7,500 $11,000 -$400 -$700 + -$700 -$2,900 + $4,500 + $14,600 + -$2,900 -$4,500 + 10 $900 + $2,000 = $200 + -$400 + Total $3,000 $14,000 $11,000 -$4,300 Lets Travel Agency Income Statement For the month ended April 30, 2017 Revenues Service Revenue $11,000 Expenses $500 Rent Expense Advertisment Expense Salaries and Wages Expense $900 $2,900 Total Expense $4,300 $6,700 Net Income /(Loss)