Foxy Investigative Services is an investigative services firm that is owned and operated by Shirley Vickers. On November 30, 2018, the end of the fiscal year, the accountant for Foxy Investigative Services prepared an end-of-period spreadsheet, a part of which follows:

Required:

Foxy Investigative Services

End-of-Period Spreadsheet

For the Year Ended November 30, 2018

~

Adjusted Trial Balance

Account Title

~

Dr.

Cr.

~

Cash

~

27,500

Accounts Receivable

~

71,800

Supplies

~

3,550

Prepaid Insurance

~

750

Building

~

330,500

Accumulated Depreciation-Building

~

184,100

Accounts Payable

~

16,100

Salaries Payable

~

6,600

Unearned Rent

~

1,500

Common Stock

~

40,000

Retained Earnings

~

70,300

Dividends

~

30,000

Service Fees

~

675,500

Rent Revenue

~

9,000

Salaries Expense

~

435,000

Rent Expense

~

55,000

Supplies Expense

~

11,850

Depreciation Expense-Building

~

10,000

Utilities Expense

~

8,800

Repairs Expense

~

4,250

Insurance Expense

~

3,000

Miscellaneous Expense

~

11,100

~

1,003,100

1,003,100

1.

A.	Prepare an income statement for the year ended November 30, 2018. 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. Refer to the Chart of Accounts for exact wording of account titles.
B.	Prepare a retained earnings statement for the year ended November 30, 2018. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Refer to the Chart of Accounts for exact wording of account titles. Refer to the lists of Labels and Amount Descriptions for exact wording of the answer choices for text entries other than account names.
C.	Prepare a balance sheet as of November 30, 2018. Fixed assets must be entered in order according to account number. Be sure to complete the statement heading. You will not need to enter colons (:) or the word "Less" on the balance sheet; they will automatically insert where necessary. Refer to the Chart of Accounts for exact wording of account titles. Refer to the lists of Labels and Amount Descriptions for exact wording of the answer choices for text entries other than account names. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

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 $46,000 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.

CHART OF ACCOUNTS

Foxy Investigative Services

General Ledger

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

	LIABILITIES
21	Accounts Payable
22	Salaries Payable
23	Unearned Rent
	EQUITY
31	Common Stock
32	Retained Earnings
33	Dividends
34	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

LabelsCurrent assetsCurrent liabilitiesExpensesFor the Year Ended November 30, 2018November 30, 2018Property, plant, and equipmentRevenuesAmount DescriptionsChange in retained earningsDividendsNet incomeNet lossRetained earnings, December 1, 2017Retained earnings, November 30, 2018Total assetsTotal current assetsTotal expensesTotal liabilitiesTotal liabilities and stockholders equityTotal property, plant, and equipmentTotal revenuesTotal stockholders equity

1A. Prepare an income statement for the year ended November 30, 2018. 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. Refer to the Chart of Accounts for exact wording of account titles.

Foxy Investigative Services

Income Statement

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

1B. Prepare a retained earnings statement for the year ended November 30, 2018. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Refer to the Chart of Accounts for exact wording of account titles. Refer to the lists of Labels and Amount Descriptions for exact wording of the answer choices for text entries other than account names.

Foxy Investigative Services

Retained Earnings Statement

1
2
3
4
5

1C. Prepare a balance sheet as of November 30, 2018. Fixed assets must be entered in order according to account number. Be sure to complete the statement heading. You will not need to enter colons (:) or the word "Less" on the balance sheet; they will automatically insert where necessary. Refer to the Chart of Accounts for exact wording of account titles. Refer to the lists of Labels and Amount Descriptions for exact wording of the answer choices for text entries other than account names. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Foxy Investigative Services

Balance Sheet

1	Assets
2
3
4
5
6
7
8
9
10
11
12
13	Liabilities
14
15
16
17
18
19	Stockholders Equity
20
21
22
23

2. Based upon the end-of-period spreadsheet, journalize the closing entries. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 11

JOURNAL

ACCOUNTING EQUATION

	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
15
16
17

3. If Retained Earnings had instead decreased $46,000 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.