Finders Investigative Services is an investigative services firm that is owned a
ID: 2415555 • Letter: F
Question
Finders Investigative Services is an investigative services firm that is owned and operated by Stacy Tanner. On June 30, 2016, the end of the fiscal year, the accountant for Finders Investigative Services prepared an end-of-period spreadsheet, a part of which follows:
If Retained Earnings has instead decreased $33,000 after the closing entries were posted, and the dividends remained the same, what would have been the amount of net income or net loss?
Trying to find out whats the income statement, Retained Earnings Statement,Balance Sheet, Journal, and 3. If Retained Earnings has instead decreased $33,000 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 the minus sign to indicate a net loss.
Finders Investigative Services End-of-Period Spreadsheet For the Year Ended June 30, 2016 ~ Adjusted Trial Balance Account Title ~ Dr. Cr. ~ Cash ~ 28,000 Accounts Receivable ~ 69,400 Supplies ~ 4,500 Prepaid Insurance ~ 2,500 Building ~ 432,000 Accumulated Depreciation-Building ~ 43,400 Accounts Payable ~ 11,100 Salaries Payable ~ 3,300 Unearned Rent ~ 1,700 Common Stock ~ 80,000 Retained Earnings ~ 293,400 Dividends ~ 11,400 Service Fees ~ 707,150 Rent Revenue ~ 11,400 Salaries Expense ~ 522,100 Rent Expense ~ 45,600 Supplies Expense ~ 10,800 Depreciation Expense-Building ~ 7,200 Utilities Expense ~ 7,150 Repairs Expense ~ 2,700 Insurance Expense ~ 2,500 Miscellaneous Expense ~ 5,600 ~ 1,151,450 1,151,450Explanation / Answer
Income Statement
For the Years Ending June 30, 2016
Revenue
Service revenue
$ 707,150.00
Rent
$ 11,400.00
Total Revenues
$ 718,550.00
Expenses
Salaries Expense
$ 522,100.00
Rent Expense
$ 45,600.00
Supplies Expense
$ 10,800.00
Depreciation Expense-Building
$ 7,200.00
Utilities Expense
$ 7,150.00
Repairs Expense
$ 2,700.00
Insurance Expense
$ 2,500.00
Miscellaneous Expense
$ 5,600.00
Total Expenses
$ 603,650.00
Net Income Before Taxes
$ 114,900.00
Income tax expense
$ -
Net Income from Continuing Operations
$ 114,900.00
Retained Earnings Statement
For the Years Ending June 30, 2016
Opening Retained earnings
$ 293,400
Add
Net Income
$ 114,900
Less
Withdrawal by Owners
$ 11,400
Closing Retained Earnings
$ 396,900
Balance sheet
as of June 30, 2016
Assets
Cash
$ 28,000
Accounts Receivable
$ 69,400
Supplies
$ 4,500
Prepaid Insurance
$ 2,500
Building
$ 432,000
Accumulated Depreciation-Building
$ (43,400)
$ 493,000
Liabilities and Equity
Accounts Payable
$ 11,100
Salaries Payable
$ 3,300
Unearned Rent
$ 1,700
Common Stock
$ 80,000
Retained Earnings
$ 396,900
$ 493,000
Date
Account
Debit
Credit
30-06-16
Service revenue
707,150
Rent
11,400
Income Statement
718,550
Date
Account
Debit
Credit
30-06-16
Income Statement
603,650
Salaries Expense
522,100
Rent Expense
45,600
Supplies Expense
10,800
Depreciation Expense-Building
7,200
Utilities Expense
7,150
Repairs Expense
2,700
Insurance Expense
2,500
Miscellaneous Expense
5,600
Date
Account
Debit
Credit
30-06-16
Income Statement
396,900
Retained Earnings
396,900
Date
Account
Debit
Credit
30-06-16
Retained Earnings
11400
Dividend
11400
Net Income or loss does not depending on retained earnings, hence no change in Net income even if retained earnings decreased $33,000 after closing entries.
Income Statement
For the Years Ending June 30, 2016
Revenue
Service revenue
$ 707,150.00
Rent
$ 11,400.00
Total Revenues
$ 718,550.00
Expenses
Salaries Expense
$ 522,100.00
Rent Expense
$ 45,600.00
Supplies Expense
$ 10,800.00
Depreciation Expense-Building
$ 7,200.00
Utilities Expense
$ 7,150.00
Repairs Expense
$ 2,700.00
Insurance Expense
$ 2,500.00
Miscellaneous Expense
$ 5,600.00
Total Expenses
$ 603,650.00
Net Income Before Taxes
$ 114,900.00
Income tax expense
$ -
Net Income from Continuing Operations
$ 114,900.00
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