Question

On April 1, Julie Chen established Miaoli’s Travel Agency. The following transactions were completed during the month.
1. Invested NT$15,000 cash to start the agency.
2. Paid NT$600 cash for April office rent.
3. Purchased equipment for NT$3,000 cash.
4. Incurred NT$700 of advertising costs for Facebook ads, on account.
5. Paid NT$900 cash for office supplies.
6. Performed services worth NT$10,000: NT$3,000 cash is received from customers, and the balance of NT$7,000 is billed to customers on account.
7. Withdrew NT$600 cash for personal use.
8. Paid Facebook NT$500 of the amount due in transaction (4).
9. Paid employees’ salaries NT$2,500.
10. Received NT$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. From an analysis of the owner’s equity columns, compute the net income or net loss for April.

Answer 1

Cash
Particulars	Debit	Particulars	Credit
Owner Capital	15000	Rent	600
Revenue	3000	Equipment	3000
Account Receivable	4000	Supplies	900
		Owner Capital	600
		Account Payable	500
		Salaries	2500
		Closing Bal C/f	13900

Owner Capital
Particulars	Debit	Particulars	Credit
Cash	600	Cash	15000
Closing Bal C/f	14400

Rent Expense
Particulars	Debit	Particulars	Credit
Cash	600

Account Receivable
Particulars	Debit	Particulars	Credit
Revenue	7000	Cash	4000
		Closing Bal C/f	3000

Supplies
Particulars	Debit	Particulars	Credit
Cash	900

Equipment
Particulars	Debit	Particulars	Credit
Cash	3000

Account Payable
Particulars	Debit	Particulars	Credit
Cash	500	Advertising	700
Closing Bal C/f	200

Revenues
Particulars	Debit	Particulars	Credit
		Cash	3000
		Account Receivable	7000

Salaries Expense
Particulars	Debit	Particulars	Credit
Cash	2500

Advertising Expense
Particulars	Debit	Particulars	Credit
Account Payable	700

Profit and Loss Account
Particulars	Debit	Particulars	Credit
Rent Expense	600	Revenue	10000
Salaries Expense	2500
Advt Expenses	700
Net Profit	6200

Please feel free to comment for any doubt.