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Tutorial Test 01

Julie Spengel established Spengel's Travel Agency and completed various transactions in April, including investments, expenses, and revenue generation. The document outlines a tabular analysis of these transactions and instructions for calculating net income or loss. Additionally, it presents a scenario with changes to rent, advertising expenses, and revenue for further analysis.

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nhatminh08102006
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69 views4 pages

Tutorial Test 01

Julie Spengel established Spengel's Travel Agency and completed various transactions in April, including investments, expenses, and revenue generation. The document outlines a tabular analysis of these transactions and instructions for calculating net income or loss. Additionally, it presents a scenario with changes to rent, advertising expenses, and revenue for further analysis.

Uploaded by

nhatminh08102006
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Chapter 1: Accounting in actions

On April 1, Julie Spengel established Spengel's Travel Agency. The following transactions were
completed during the month.
1. Invested $15,000 cash to start the agency.
2 Paid $600 cash for April office rent.
3. Purchased equipment for $3,000 cash.
4. Incurred $700 of advertising costs in the Chicago Tribune, on account.
5. Paid $900 cash for office supplies.
6. Performed services worth $10,000: $3,000 cash is received from customers, and the
balance of $7,000 is billed to customers on account.
7. Withdrew $600 cash for personal use.
8. Paid Chicago Tribune $500 of the amount due in transaction (4).
9. Paid employees' salaries $2,500.
10. Received $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.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a

(a) SPENGEL'S TRAVEL AGENCY

Accounts Accounts
Cash + Receivable + Supplies + Equipment = Payable
1. Value
Value =
2. ?
Value =
3. Value Value
? + ? =
4. Value
? + ? = ?
5. Value Value
? + ? + ? = ?
6. Value Value
? + ? + ? + ? = ?
7. Value Value
? + ? + ? + ? = ?
8. Value
? + ? + ? + ? = ?
9. Value
? + ? + ? + ? = ?
10 Value Value
? + ? + ? + ? = ?
(b) Service Revenue Value
Expenses
Salaries and Wages ?
Rent ?
Advertising ? ?
Net income ?

After you have completed the requirements of the above question, consider this additional question.
1. Assume that office rent and advertising expense changed to $800 and $600 respectively. In addition, revenue
with $5,000 collected in cash and the balance on account. Show the impact of these changes in the analysis
or loss for the month.
ormula in cells with a "?" .

L'S TRAVEL AGENCY


Owner's Equity
Owner's Owner's
+ Capital - Drawings + Revenues - Expenses
Value
?
Value
? - ?

? - Value
Value
+ ? - ?

+ ? - ?
Value
+ ? + ? - ?
Value
+ ? - ? + ? - ?

+ ? - ? + ? - ?
Value
+ ? - ? + ? - ?

+ ? - ? + ? - ?
ely. In addition, revenues changed to $12,000
hanges in the analysis and on the net income

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