The Ultra Services Company is a financial planning services firm owned and operated by Chad Tillman. As of July 31, 2008, the end of the current fiscal year, the accountant for The Ultra Services Company prepared an end-of-period spreadsheet (work sheet), part of which is shown at the top of the next page.

{Instructions}

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

2. Journalize the entries that were required to close the accounts at July 31.

3. If the balance of Capital Stock decreased \(\$ 40,000\) 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 Ultra Services Company End-of-Period Spreadsheet (Work Sheet) For the Year Ended July 31, 2008 Income Statement Balance Sheet 1 Cash 2 Accounts Receivable 3 Supplies 13,950 41,880 4 Prepaid Insurance 5 Land 8,400 7,500 180,000 6 Buildings 360,000 7 Accumulated Depreciation-Buildings 217,200 7 8 Equipment 258,270 1234567 8 9 Accumulated Depreciation-Equipment 122,700 9 10 Accounts Payable 11 Salaries Payable 33,300 10 3,300 11 12 Unearned Rent 13 Capital Stock 14 Retained Earnings 15 Dividends 16 Service Fees 1,500 12 90,000 13 250,500 14 30,000 15 525,000 16 17 Rent Revenue 4,500 17 18 Salary Expense 219,000 18 19 Depreciation Expense-Equipment 28,500 20 Rent Expense 25,500 21 Supplies Expense 22,950 22 Utilities Expense 15,900 23 Depreciation Expense-Buildings 15,600 24 Repairs Expense 12,450 25 Insurance Expense 3,000 26 Miscellaneous Expense 5.100 27 348,000 529,500 900,000 718,500 27 28 Net income 29 181,500 181,500 28 529.500 529,500 900.000 900.000 29 2222222222 19 20 21 23 24 25 26