Financial statements and closing entries Obj. 2, 3 Foxy Investigative Services is an investigative services firm that is owned and operated by Shirley Vickers. On November 30, 20Y8, the end of the fiscal year, the accountant for Foxy Investigative Services prepared an end-of-period spreadsheet, a part of which follows:

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9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Foxy Investigative Services End-of-Period Spreadsheet For the Year Ended November 30, 20Y8 Adjusted Trial Balance Account Title Dr. Cr.

Cash Accounts Receivable Supplies Prepaid Insurance Building Accumulated Depreciation—Building Accounts Payable Salaries Payable Unearned Rent Common Stock Retained Earnings Dividends Service Fees Rent Revenue Salaries Expense Rent Expense Supplies Expense Depreciation Expense—Building Utilities Expense Repairs Expense Insurance Expense Miscellaneous Expense 675,500 9,000 27,500 71,800 3,550 750 330,500 30,000 184,100 16,100 6,600 1,500 40,000 70,300 435,000 55,000 11,850 10,000 8,800 4,250 3,000 11,100 1,003,100 1,003,100 A F G Instructions 1. Prepare an income statement, a statement of stockholders’ equity, and a balance sheet.

2. Journalize the entries that were required to close the accounts at November 30, 20Y8.

No additional common stock was issued during the year ended November 30, 20Y8.

3. If Retained Earnings had instead decreased $46,000 after the closing entries were posted, and the dividends remained the same, what would have been the amount of net income or net loss?

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