The Nevus Company is an investigative services firm that is owned and operated by Stacey Vargas. On April 30, 2008, the end of the current fiscal year, the accountant for The Nevus Company prepared an end-of-period spreadsheet (work sheet), a part of which is shown at the top of the following page.

{Instructions}

1. Prepare an income statement, retained earnings statement, and a balance sheet.

2. Journalize the entries that were required to close the accounts at April 30 .

3. If Retained Earnings decreased \(\$ 35,000\) after the closing entries were posted, and the dividends remained the same, what was the amount of net income or net loss?objs. 2,3

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A H The Nevus Company End-of-Period Spreadsheet (Work Sheet) For the Year Ended April 30, 2008 Income Statement J K 1 Cash 2 Accounts Receivable 3 Supplies 4 Prepaid Insurance Balance Sheet 9,000 1 5 Equipment 6 Accumulated Depreciation-Equipment 7 Accounts Payable 8 Salaries Payable 9 Unearned Rent 10 Capital Stock 11 Retained Earnings 12 Dividends 13 Service Fees 14 Rent Revenue 15 Salary Expense 37,200 3,500 4,800 23 169,500 5 55,200 6 10.500 7 2,500 8 3,000 9 35,000 10 107,800 11 16,000 12 363,000 13 7,000 14 270,000 15 16 Rent Expense 37,000 16 17 Supplies Expense 8,000 17 18 Depreciation Expense-Equipment 7,000 18 19 Utilities Expense 6,400 19 20 Repairs Expense 6,200 20 21 Insurance Expense 4,800 21 22 Miscellaneous Expense 4,600 22 23 24 Net income 25 344,000 370,000 240,000 214,000, 23 26,000 370,000 370,000 240,000 240,000 25 26,000 24