On April 1, Holly Dahl established Holiday Travel Agency Ltd. The following transactions were completed during the month. 1. Shareholders invested €12,000 cash in the business in exchange for ordinary shares. 2. Paid €400 cash for April offi ce rent. 3. Purchased offi ce equipment for €5,500 cash. 4. Incurred €300 of advertising costs in a local newspaper, on account. 5. Paid €600 cash for offi ce supplies. 6. Performed services worth €8,500: €2,000 cash is received from customers, and the balance of €6,500 is billed to customers on account. 7. Declared and paid a €200 cash dividend. 8. Paid the local newspaper amount due in transaction (4). 9. Paid employees’ salaries €2,200. 10. Received €5,700 in cash from customers billed previously in transaction (6). Analyze transactions and compute net income. A) prepare a tabular analysis of the transactions B)calculate the net income or net loss C)prepare the income statement of the company

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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On April 1, Holly Dahl established Holiday Travel Agency Ltd. The following transactions were completed during the month. 1. Shareholders invested €12,000 cash in the business in exchange for ordinary shares. 2. Paid €400 cash for April offi ce rent. 3. Purchased offi ce equipment for €5,500 cash. 4. Incurred €300 of advertising costs in a local newspaper, on account. 5. Paid €600 cash for offi ce supplies. 6. Performed services worth €8,500: €2,000 cash is received from customers, and the balance of €6,500 is billed to customers on account. 7. Declared and paid a €200 cash dividend. 8. Paid the local newspaper amount due in transaction (4). 9. Paid employees’ salaries €2,200. 10. Received €5,700 in cash from customers billed previously in transaction (6). Analyze transactions and compute net income. A) prepare a tabular analysis of the transactions B)calculate the net income or net loss C)prepare the income statement of the company
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