Finders Investigative Services is an investigative services firm that is owned and operated by Stacy Tanner. On June 30, 2019, 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, 2019
	~	Adjusted Trial Balance
Account Title	~	Dr.	Cr.
	~
Cash	~	28,000
Accounts Receivable	~	69,600
Supplies	~	4,600
Prepaid Insurance	~	2,500
Building	~	439,500
Accumulated Depreciation-Building	~		44,200
Accounts Payable	~		11,700
Salaries Payable	~		3,000
Unearned Rent	~		2,000
Stacy Tanner, Capital	~		373,800
Stacy Tanner, Drawing	~	12,000
Service Fees	~		718,000
Rent Revenue	~		12,000
Salaries Expense	~	522,100
Rent Expense	~	48,000
Supplies Expense	~	10,800
Depreciation Expense-Building	~	8,750
Utilities Expense	~	7,150
Repairs Expense	~	3,000
Insurance Expense	~	2,500
Miscellaneous Expense	~	6,200
	~	1,164,700	1,164,700

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.

General Ledger

	ASSETS
11	Cash
12	Accounts Receivable
13	Supplies
14	Prepaid Insurance
16	Building
17	Accumulated Depreciation-Building

	LIABILITIES
21	Accounts Payable
22	Salaries Payable
23	Unearned Rent

	EQUITY
31	Stacy Tanner, Capital
32	Stacy Tanner, Drawing
33	Income Summary

	REVENUE
41	Service Fees
42	Rent Revenue

	EXPENSES
51	Salaries Expense
52	Rent Expense
53	Supplies Expense
54	Depreciation Expense-Building
55	Utilities Expense
56	Repairs Expense
57	Insurance Expense
59	Miscellaneous Expense

Labels
Current assets
Current liabilities
Expenses
For the Year Ended June 30, 2019
June 30, 2019
Property, plant, and equipment
Revenues
Amount Descriptions
Decrease in owners equity
Increase in owners equity
Net income
Net loss
Stacy Tanner, capital, July 1, 2018
Stacy Tanner, capital, June 30, 2019
Total assets
Total current assets
Total expenses
Total liabilities
Total liabilities and owners equity
Total property, plant, and equipment
Total revenues
Withdrawals

1. Prepare an income statement for the year ended June 30, 2019. 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.

Score: 126/126

Finders Investigative Services

Income Statement

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1	?
2	?	?
3	?	?
4	?		?
5	?
6	?	?
7	?	?
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9	?	?
10	?	?
11	?	?
12	?	?
13	?	?
14	?		?
15	?		?

1. Prepare a statement of owners equity for the year ended June 30, 2019. No additional investments were made during the year. For those boxes in which you must enter subtracted or negative numbers use 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.

Score: 54/54

Finders Investigative Services

Statement of Owners Equity

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1	?		?
2	?	?
3	?	?
4	?		?
5	?		?

1. Prepare a balance sheet as of June 30, 2019. 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.

Score: 139/139

Finders Investigative Services

Balance Sheet

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1	Assets
2	?
3	?	?
4	?	?
5	?	?
6	?	?
7	?		?
8	?
9	?	?
10	?	?
11	?		?
12	?		?
13	Liabilities
14	?
15	?	?
16	?	?
17	?	?
18	?		?
19	Owners equity
20	?		?
21	?		?

2. Based upon the end-of-period spreadsheet, journalize the closing entries. If you are unsure of account titles, see the chart of accounts.

All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback.

PAGE 11

JOURNAL

ACCOUNTING EQUATION

Score: 121/159

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1		Closing Entries
2
3
4
5
6
7
8
9
10
11
12
13
14

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? If required, use the minus sign to indicate a net loss.