Finders Investigative Services is an investigative services firm that is owned a
ID: 2423774 • 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: Finders Investigative Services End-of-Period Spreadsheet For the Year Ended June 30, 2016 ~ Adjusted Trial Balance Account Title ~ Dr. Cr. ~ Cash ~ 28,000.00 Accounts Receivable ~ 69,600.00 Supplies ~ 4,600.00 Prepaid Insurance ~ 2,500.00 Building ~ 439,500.00 Accumulated Depreciation-Building ~ 44,200.00 Accounts Payable ~ 11,700.00 Salaries Payable ~ 3,000.00 Unearned Rent ~ 2,000.00 Stacy Tanner, Capital ~ 373,800.00 Stacy Tanner, Drawing ~ 12,000.00 Service Fees ~ 718,000.00 Rent Revenue ~ 12,000.00 Salaries Expense ~ 522,100.00 Rent Expense ~ 48,000.00 Supplies Expense ~ 10,800.00 Depreciation Expense-Building ~ 8,750.00 Utilities Expense ~ 7,150.00 Repairs Expense ~ 3,000.00 Insurance Expense ~ 2,500.00 Miscellaneous Expense ~ 6,200.00 ~ 1,164,700.00 1,164,700.00 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?
Can you show in detail on how you got the answers for the jounal and the 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?
Explanation / Answer
Net Operating Income (transferred to
Stoacy T Capital)
Balance Sheet as on 30 June, 2016
Stacy T. Capital Statement as on 30 June, 2016
Closing entries:
Debit Net Operating Income $121500
Credit Stacy T Capital $121500
Debit Stacy T Capital $12000
Credit Stacy T Drawing $12000
3. If Stacy Tanner, Capital has instead decreased $30,000 after the closing entries were posted, and the withdrawals remained the same, the amount have been of net loss would be $18000.
Expected Loss = $18000
Drawing = $12000
Total reduction in capital = $30000
Stacy T. capital = $373800
Net Stracy T. Capital = $343800 (decreased by $30000 as desired)
Income Statement for year ended 30June 2016 Salary Expenses $522100 Services Fees $718000 Rent Expenses 48000 Rent Revenue 12000 Supplies expenses 10800 Depreciation expenses 8750 Utilities expenses 7150 Repair expenses 3000 Insurance Expense 2500 Mislaneous Expense 6200Net Operating Income (transferred to
Stoacy T Capital)
121500 Total 730000 Total 730000Related Questions
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