Mather Services Company is a financial planning services firm owned and operated by Lee Mather. As of July 31, 2012, the end of the current fiscal year, the accountant for Mather Services Company prepared an end-of-period spreadsheet (work sheet), part of which is shown below.

Instructions
1. Prepare an income statement, a statement of owner's equity (no additional investments were made during the year), and a balance sheet.
2. Journalize the entries that were required to close the accounts at July 31.
3. If the balance of Lee Mather, Capital increased $40,000 after the closing entries were posted, and the withdrawals remained the same, what was the amount of net income or netloss?

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Mather Services Company End-of-Period Spread sheet For the Year Ended July 31, 2012 Adjusted Trial Balance 6 Account Tibe Dr. Cr. Cash 1,000 28,150 6.350 9,500 100.000 Accounts Receivable Prepaid Insurance 12 13 Accumulated Depreciation Biadigs 14 Equpment 117.200 151,700 3,300 407,000 475,000 26000 15Accumulated Deprecation Equipmert Salaries 9 Lee Mathes, Capital 21 Service Fees 23 Salaries 5 Rent Expense 325,000 Equipment 17 15,500 9.000 8.500 6.500 3.450 3,000 26 Suppies Expense 28 Depreciation Expense Buildings 29 30 Insirance Expense 31 Esce aneous Expense 32 450 4.000