2. Based upon the end-of-period spreadsheet, journalize the closing entries.

Cash ~ 25,000 Accounts Receivable ~ 69,200 Supplies ~ 4,400 Prepaid Insurance ~ 2,500 Building ~ 431,000 Accumulated Depreciation-Building ~ 41,200 Accounts Payable ~ 11,800 Salaries Payable ~ 2,700 Unearned Rent ~ 1,700 Common Stock ~ 80,000 Retained Earnings ~ 294,400 Dividends ~ 12,100 Service Fees ~ 710,300 Rent Revenue ~ 12,100 Salaries Expense ~ 524,300 Rent Expense ~ 48,400 Supplies Expense ~ 10,400 Depreciation Expense-Building ~ 8,400 Utilities Expense ~ 7,400 Repairs Expense ~ 2,700 Insurance Expense ~ 2,400 Miscellaneous Expense ~ 6,000 ~ 1,154,200 1,154,200

Finders Investigative Services is an investigative services firm that is owned and operated by Stacy Tanner. On June 30, 2016, the end of the fiscal year, the accountant for Finders Investigative Services prepared an end-of-period spreadsheet, a part of which follows: Finders Investigative Services End-of-Period Spreadsheet For the Year Ended June 30, 2016 ~ Adjusted Trial Balance Account Title ~ Dr. Cr. ~ Cash ~ 25,000 Accounts Receivable ~ 69,200 Supplies ~ 4,400 Prepaid Insurance ~ 2,500 Building ~ 431,000 Accumulated Depreciation-Building ~ 41,200 Accounts Payable ~ 11,800 Salaries Payable ~ 2,700 Unearned Rent ~ 1,700 Common Stock ~ 80,000 Retained Earnings ~ 294,400 Dividends ~ 12,100 Service Fees ~ 710,300 Rent Revenue ~ 12,100 Salaries Expense ~ 524,300 Rent Expense ~ 48,400 Supplies Expense ~ 10,400 Depreciation Expense-Building ~ 8,400 Utilities Expense ~ 7,400 Repairs Expense ~ 2,700 Insurance Expense ~ 2,400 Miscellaneous Expense ~ 6,000 ~ 1,154,200 1,154,200 Required: 1. A. Prepare an income statement for the year ended June 30, 2016. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items other than account names. You will not need to enter colons (:) on the income statement. B. Prepare a retained earnings statement for the year ended June 30, 2016. If a net loss has been incurred or there has been a decrease in retained earnings, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items. C. Prepare a balance sheet as of June 30, 2016. Fixed assets must be entered in order according to account number. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items other than account names. You will not need to enter colons (:) or the word "Less" on the balance sheet; they will automatically insert where necessary. 2. Based upon the end-of-period spreadsheet, journalize the closing entries. 3. If Retained Earnings has instead decreased $36,000 after the closing entries were posted, and the dividends remained the same, what would have been the amount of net income or net loss? X Income Statement 1A. Prepare an income statement for the year ended June 30, 2016. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items other than account names. You will not need to enter colons (:) on the income statement. Finders Investigative Services Income Statement

For the Year Ended June 30, 2016 1

Revenues: 2

Service Fees

$714,800.00 3

Rent revenue

12,000.00 4

Total revenues

$726,800.00 5

Expenses: 6

Salaries expense

$526,000.00 7

Rent expense

48,000.00 8

Supplies expense

11,000.00 9

Depreciation expense-building

7,000.00 10

Utilities expense

7,300.00 11

Repairs expense

2,800.00 12

Insurance expense

2,000.00 13

Miscellaneous expense

5,800.00 14

Total expenses

609,900.00 15

Net income

$116,900.00 X Final Question 3. If Retained Earnings has instead decreased $36,000 after the closing entries were posted, and the dividends remained the same, what would have been the amount of net income or net loss? If required, use the minus sign to indicate a net loss.

1 DATE Jun. 30 DESCRIPTION Closing Entries JOURNAL POST. REF DEBIT Score: 32/197 CREDIT