P1-1B On April 1, Holly Dahl established Holiday Travel Agency Ltd. The following trans- actions 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 office rent. 3. Purchased office equipment for €5,500 cash. 4. Incurred €300 of advertising costs in a local newspaper, on account. 5. Paid €600 cash for office 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).
P1-1B On April 1, Holly Dahl established Holiday Travel Agency Ltd. The following trans- actions 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 office rent. 3. Purchased office equipment for €5,500 cash. 4. Incurred €300 of advertising costs in a local newspaper, on account. 5. Paid €600 cash for office 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).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
a)prepare a tabular analysis of the transactions
b)prepare the income statement of the company
c)calculate the net income or net loss
Transcribed Image Text:SET B
P1-1B On April 1, Holly Dahl established Holiday Travel Agency Ltd. The following trans-
actions 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 office rent.
3. Purchased office equipment for €5,500 cash.
4. Incurred €300 of advertising costs in a local newspaper, on account.
5. Paid €600 cash for office 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).
Problems: Set B
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