Question

Chapter 3 Problem to be completed with Excel

P3-1A On April 1, Wonder Travel Agency Inc. was established. These transactions were completed during the month. • 1.Stockholders invested $30,000 cash in the company in exchange for common stock. • 2.Paid $900 cash for April office rent. • 3.Purchased office equipment for $3,400 cash. • 4.Purchased $200 of advertising in the Chicago Tribune, on account. • 5.Paid $500 cash for office supplies. • 6.Performed services worth $12,000. Cash of $3,000 is received from customers, and the balance of $9,000 is billed to customers on account. • 7.Paid $400 cash dividend. • 8.Paid Chicago Tribune amount due in transaction (4). • 9.Paid employees' salaries $1,800. • 10.Received $9,000 in cash from customers billed previously in transaction (6). Instructions: Prepare a tabular analysis of the transactions using these column headings: Cash, Accounts Receivable, Supplies, 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. Cash $34,800 Total assets $38,700

Answer 1

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