Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 ~ 23,600
Accounts Receivable ~ 68,400
Supplies ~ 4,500
Prepaid Insurance ~ 2,500
Building ~ 432,000
Accumulated Depreciation-Building ~ 44,200
Accounts Payable ~ 11,100
Salaries Payable ~ 3,300
Unearned Rent ~ 1,700
Stacy Tanner, Capital ~ 372,400
Stacy Tanner, Drawing ~ 11,400
Service Fees ~ 703,750
Rent Revenue ~ 11,400
Salaries Expense ~ 522,100
Rent Expense ~ 45,600
Supplies Expense ~ 10,800
Depreciation Expense-Building ~ 9,000
Utilities Expense ~ 7,150
Repairs Expense ~ 2,700
Insurance Expense ~ 2,500
Miscellaneous Expense ~ 5,600
~ 1,147,850 1,147,850
Required:
1. Prepare an income statement, a statement of owners 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 June 30. *
3. If Stacy Tanner, Capital has instead decreased $30,000 after the closing entries were posted, and the withdrawals remained the same, what would have been the amount of net income or net loss?
* Be sure to read the instructions for each financial statement carefully. Refer to the chart of accounts and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Health Care Finance And The Mechanics Of Insurance And Reimbursement

Authors: Michael K. Harrington

1st Edition

1284026124, 9781284026122

More Books

Students also viewed these Finance questions