Finders Investigative Services is an investigative services firm that is owned a

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:

Required:

Finders Investigative Services

End-of-Period Spreadsheet

For the Year Ended June 30, 2016

~

Adjusted Trial Balance

Account Title

~

Dr.

Cr.

~

Cash

~

20,300

Accounts Receivable

~

69,400

Supplies

~

4,600

Prepaid Insurance

~

2,500

Building

~

434,000

Accumulated Depreciation-Building

~

42,000

Accounts Payable

~

11,600

Salaries Payable

~

3,000

Unearned Rent

~

1,800

Stacy Tanner, Capital

~

372,000

Stacy Tanner, Drawing

~

11,900

Service Fees

~

708,650

Rent Revenue

~

11,900

Salaries Expense

~

523,900

Rent Expense

~

47,600

Supplies Expense

~

10,800

Depreciation Expense-Building

~

7,500

Utilities Expense

~

7,250

Repairs Expense

~

2,800

Insurance Expense

~

2,800

Miscellaneous Expense

~

5,600

~

1,150,950

1,150,950

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 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.

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: Finders Investigative Services End-of-Period Spreadsheet For the Year Ended June 30, 2016 ~ Adjusted Trial Balance Account Title ~ Dr. Cr. ~ Cash ~ 20,300 Accounts Receivable ~ 69,400 Supplies ~ 4,600 Prepaid Insurance ~ 2,500 Building ~ 434,000 Accumulated Depreciation-Building ~ 42,000 Accounts Payable ~ 11,600 Salaries Payable ~ 3,000 Unearned Rent ~ 1,800 Stacy Tanner, Capital ~ 372,000 Stacy Tanner, Drawing ~ 11,900 Service Fees ~ 708,650 Rent Revenue ~ 11,900 Salaries Expense ~ 523,900 Rent Expense ~ 47,600 Supplies Expense ~ 10,800 Depreciation Expense-Building ~ 7,500 Utilities Expense ~ 7,250 Repairs Expense ~ 2,800 Insurance Expense ~ 2,800 Miscellaneous Expense ~ 5,600 ~ 1,150,950 1,150,950 Required: 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 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.

Required:

Finders Investigative Services

End-of-Period Spreadsheet

For the Year Ended June 30, 2016

~

Adjusted Trial Balance

Account Title

~

Dr.

Cr.

~

Cash

~

20,300

Accounts Receivable

~

69,400

Supplies

~

4,600

Prepaid Insurance

~

2,500

Building

~

434,000

Accumulated Depreciation-Building

~

42,000

Accounts Payable

~

11,600

Salaries Payable

~

3,000

Unearned Rent

~

1,800

Stacy Tanner, Capital

~

372,000

Stacy Tanner, Drawing

~

11,900

Service Fees

~

708,650

Rent Revenue

~

11,900

Salaries Expense

~

523,900

Rent Expense

~

47,600

Supplies Expense

~

10,800

Depreciation Expense-Building

~

7,500

Utilities Expense

~

7,250

Repairs Expense

~

2,800

Insurance Expense

~

2,800

Miscellaneous Expense

~

5,600

~

1,150,950

1,150,950

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 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.

Explanation / Answer

Answer 1. Finders Investigate Services Income Statement For the year ended June 30, 2016 Particulars Amount Income Service Fees          708,650 Less: Expenses Salaries Expenses          523,900 Rent Expenses            47,600 Supplies Expenses            10,800 Depreciation Exp. - Building              7,500 Utilities Expenses              7,250 Repair Expenses              2,800 Insurance Expenes              2,800 Misc Exp.              5,600          608,250 Operating Profit          100,400 Add: Other Income Rent Revenue            11,900 Net Income          112,300 Finders Investigate Services Statement of Owner's Equity For the year ended June 30, 2016 Particulars Amount Stacy Tanner Opening Balance          372,000 Add: Net Income          112,300          484,300 Less: Stacy Tanner, Drawings            11,900 Closing Balance          472,400 Finders Investigate Services Balance Sheet For the year ended June 30, 2016 Particulars Amount Assets Currents Assets Cash            20,300 Accounts Receivables            69,400 Supplies              4,600 Prepaid Insurance              2,500 Total Current Assets            96,800 Tangible Assets Building          434,000 Less: Accumulated Dep.            42,000 Total Tangible Assets          392,000 Total Assets          488,800 Liabilities and Shareholder's Equity Current Liabilities Accounts Payables 11600 Salaries Payable 3000 Unearned Rent 1800 Total Current Liabilities            16,400 Long Term liabilities Shareholder Equity          472,400 (As per Schedule Attached Total Liabilities & Shareholder's Equity          488,800 Answer 2. Journal Entry Date Particulars Dr Amount Cr Amount Income Statement                             Dr.            608,250 To Salaries Expenses            523,900 To Rent Expenses              47,600 To Supplies Exp.              10,800 To Depreciation Exp. Building                 7,500    To Utilities Exp.                 7,250    To Repair Expenses                 2,800    To Insurance Exp.                 2,800    To Misc. Exp.                 5,600 (Closing Entries Passed) Service Fees                                      Dr. 708650 Rent Revenue                                   Dr. 11900     To Income Statement 720550 (Incomes transferred to Income Statement) Income Statement                          Dr. 112300     To Stacy Tanner Capital 112300 (Profit earned during the year transferred to Stacy Tanner Capital Account) Stacy Tanner Capital                      Dr. 11900    To Stacy Tanner, Drawing           11900 (Stacy tanner, drawing account transferred tp stacy tanner capital account) Answer 3. Finders Investigate Services Statement of Owner's Equity For the year ended June 30, 2016 Particulars Amount Stacy Tanner Opening Balance    372,000 Less: Stacy Tanner, Drawings      11,900    360,100 Closing Balance    342,000 Net Income / (Loss)    (18,100)

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