The Ultra Services Company is a financial planning services firm owned and operated by Chad Tillman. As of July 31, 2008, the end of the current fiscal year, the accountant for The Ultra Services Company prepared an end-of-period spreadsheet (work sheet), part of which is shown below.

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 July 31.

3. If the balance of Chad Tillman, Capital decreased $40,000 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 Ultra Services Company End-of-Period Spreadsheet (Work Sheet) For the Year Ended July 31, 2008 Income Statement Balance Sheet 1 Cash 41,880 8,400 7,500 Accounts Receivable 4Prepaid Insurance 5 Land 360,000 Buildi 7Accumulated Depreciation-Buildings 217,2007 258,270 Equipment 9 Accumulated Depreciation Equipment 10 Accounts Payable 11 Salaries Payable 12 Unearned Rent 13 Chad Tillman, Capital 14 Chad Tillman, Drawing 15 Service Fees 16 Rent Revenue 17 Salary Expense 18 Depreciation Expense- Equipment 19 Rent Expense 20 Supplies Expense 21 Utilities Expense 22 Depreciation Expense-Buildings 23 Repairs Expense 24 Insurance Expense 25 Miscellaneous Expense 122,700 9 33,300 10 1,500 12 340,500 13 525,000 4,500 28.500 25,500 15,900 15,600 3,000 5 348,000 529,500 900,000 718,500 26 181.500 27 529500 529,500 900,000 900,000 28 27 Net income