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Foxy Investigative Services is an investigative services firm that is owned and operated by Shirley Vickers. On November 30, 20Y8, the end of the fiscal
Foxy Investigative Services is an investigative services firm that is owned and operated by Shirley Vickers. On November 30, 20Y8, the end of the fiscal year, the accountant for Foxy Investigative Services prepared an end-of-period spreadsheet, a part of which follows:
Foxy Investigative Services | |||
End-of-Period Spreadsheet | |||
For the Year Ended November 30, 20Y8 | |||
~ | Adjusted Trial Balance | ||
Account Title | ~ | Dr. | Cr. |
~ | |||
Cash | ~ | 28,000 | |
Accounts Receivable | ~ | 70,000 | |
Supplies | ~ | 4,600 | |
Prepaid Insurance | ~ | 2,500 | |
Building | ~ | 434,000 | |
Accumulated Depreciation-Building | ~ | 41,400 | |
Accounts Payable | ~ | 11,600 | |
Salaries Payable | ~ | 3,000 | |
Unearned Rent | ~ | 1,800 | |
Common Stock | ~ | 80,000 | |
Retained Earnings | ~ | 294,400 | |
Dividends | ~ | 11,900 | |
Service Fees | ~ | 716,650 | |
Rent Revenue | ~ | 11,900 | |
Salaries Expense | ~ | 523,900 | |
Rent Expense | ~ | 47,600 | |
Supplies Expense | ~ | 10,800 | |
Depreciation Expense-Building | ~ | 9,000 | |
Utilities Expense | ~ | 7,250 | |
Repairs Expense | ~ | 2,800 | |
Insurance Expense | ~ | 2,800 | |
Miscellaneous Expense | ~ | 5,600 | |
~ | 1,160,750 | 1,160,750 | |
Required: | |||||||
1. |
| ||||||
2. | Based upon the end-of-period spreadsheet, journalize the closing entries. Refer to the Chart of Accounts for exact wording of account titles. | ||||||
3. | If Retained Earnings had instead decreased $31,000 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 a minus sign to indicate a net loss. |
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