Finders Investigative Services is an investigative services firm that is owned a
ID: 2715069 • 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 ~ 23,600 Accounts Receivable ~ 68,400 Supplies ~ 4,500 Prepaid Insurance ~ 2,500 Building ~ 432,000 Accumulated Depreciation-Building ~ 44,200 Accounts Payable ~ 11,100 Salaries Payable ~ 3,300 Unearned Rent ~ 1,700 Stacy Tanner, Capital ~ 372,400 Stacy Tanner, Drawing ~ 11,400 Service Fees ~ 703,750 Rent Revenue ~ 11,400 Salaries Expense ~ 522,100 Rent Expense ~ 45,600 Supplies Expense ~ 10,800 Depreciation Expense-Building ~ 9,000 Utilities Expense ~ 7,150 Repairs Expense ~ 2,700 Insurance Expense ~ 2,500 Miscellaneous Expense ~ 5,600 ~ 1,147,850 1,147,850Explanation / Answer
Answer:1.
Answer:2
for closing of revenue account to income summary
Dr. Service Fees 703750.00
Cr. Income Summary 703750.00
Dr. Rent revenue 11400
Cr. Income Summary 11400
2. for closing of expense account to income summary
Dr. Income Summary 605450
Cr. Salaries Expense 522100
Cr. Rent Expense 45600
Cr. Supplies Expense 10800
Cr. Miscellaneous Expense 5600
Cr.Depreciation Expense-Building 9000
Cr. utilities expense 7150
Cr. Repairs expense 2700
Cr. Insurance exp 2500
3. to transfer the balance of income summary to retained earnings
Dr. Income Summary 109700
Cr. Retained Earnings 109700
Answer:3 If Stacy Tanner, Capital has instead decreased $30,000 after the closing entries were posted, and the withdrawals remained the same, the amount of net income or net loss will be increased by $30000.
Income statement Particulars Amount ($) Service fees 703750 Rent revenue 11400 Total revenue 715150 Less: Expenses Salaries expense 522100 Rent expense 45600 Supplies expense 10800 Depreciation Expense-Building 9000 Utilities Expense 7150 Repairs Expense 2700 Insurance expense 2500 Miscellaneous expense 5600 Total expense 605450 Net income 109700Related Questions
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