LAST STEP--- 1. 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.
| Finders 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 | Owners equity | | |
| 20 | | | |
| 21 | | | |
START:--- Finders Investigative Services is an investigative services firm that is owned and operated by Stacy Tanner. On June 30, 2016, the end of thefiscal 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 | ~ | 29,500 |
| Accounts Receivable | ~ | 70,200 |
| Supplies | ~ | 4,700 |
| Prepaid Insurance | ~ | 2,500 |
| Building | ~ | 438,500 |
| Accumulated Depreciation-Building | ~ | 42,200 |
| Accounts Payable | ~ | 11,700 |
| Salaries Payable | ~ | 3,400 |
| Unearned Rent | ~ | 1,900 |
| Stacy Tanner, Capital | ~ | 372,600 |
| Stacy Tanner, Drawing | ~ | 12,000 |
| Service Fees | ~ | 723,600 |
| Rent Revenue | ~ | 12,000 |
| Salaries Expense | ~ | 524,300 |
| Rent Expense | ~ | 48,000 |
| Supplies Expense | ~ | 10,800 |
| Depreciation Expense-Building | ~ | 7,500 |
| Utilities Expense | ~ | 7,200 |
| Repairs Expense | ~ | 2,900 |
| Insurance Expense | ~ | 2,800 |
| Miscellaneous Expense | ~ | 6,500 |
| ~ | 1,167,400 | 1,167,400 |
| 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. |
|
| CHART OF ACCOUNTS |
| Finders Investigative Services |
| 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, 2016 June 30, 2016 Property, plant, and equipment Revenues Amount Descriptions Add withdrawals Decrease in owners equity Increase in owners equity Less withdrawals Net income Net loss Stacy Tanner, capital, July 1, 2015 Stacy Tanner, capital, June 30, 2016 Total assets Total current assets Total expenses Total liabilities Total liabilities and owners equity Total property, plant, and equipment
Total revenues
1. 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 |
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1. Prepare a statement of owners equity for the year ended June 30, 2016. No additional investments were made during the year. If a net loss has been incurred or there has been a decrease in owners equity, 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.
| Finders Investigative Services |
| Statement of Owners Equity |
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