The Hometown Services Company is a financial planning services firm owned and operated by Jane Maines. As of March 31, 2010, the end of the current fiscal year, the accountant for The Hometown Services Company prepared an end-of-period spreadsheet (work sheet)

Instructions

1. Prepare an income statement, a statement of owner's 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 March 31.

3. If the balance of Jane Maines, Capital increased $35,000 after the closing entries were posted, and the withdrawals remained the same, what was the amount of net income or netloss?

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The Hometown Services Company End-of-Period Spreadsheet (Work Sheet) For the Year Ended March 31, 2010 Income Statement Balance Sheet Dr. Dr. Cr. Cr. Cash Accounts Receivable Supplies Prepaid Insurance Land Buildings |Accumulated Deprecia tion-Buildings Equipment Accumulated Deprecia tion-Equipment Accounts Payable Sala res Payable Uneamed Rent Jane Maines, Capital Jane Maines, Drawing Service Fees Rent Revenue Salary Expense Depreciation Expense-Equipment Rent Expense Supplies Expense Utlities Expense Depreciation Expense Buildings Repairs Expense Insurance Expense Mis cellaneous Expense 12,950 28,150 4,400 9,500 100,000 360,000 117,200 260,000 152,700 33,300 3,300 1,500 427,600 25,000 475,000 5,000 340,600 18,500 15,500 10,950 9,900 6,600 5,450 3,000 5.100 415,600 480,000 800,000 735,600 64,400 Net income 64.400 800.000 800.000 480.000 480.000