Question

Finders Investigative Services is an investigative services firm that is owned and operated by Stacy Tanner. On June 30, 2019, 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, 2019
	~	Adjusted Trial Balance
Account Title	~	Dr.	Cr.
	~
Cash	~	24,600
Accounts Receivable	~	71,400
Supplies	~	4,700
Prepaid Insurance	~	2,500
Building	~	432,500
Accumulated Depreciation-Building	~		42,700
Accounts Payable	~		11,700
Salaries Payable	~		2,500
Unearned Rent	~		1,800
Stacy Tanner, Capital	~		373,400
Stacy Tanner, Drawing	~	12,000
Service Fees	~		713,600
Rent Revenue	~		12,000
Salaries Expense	~	526,000
Rent Expense	~	48,000
Supplies Expense	~	11,000
Depreciation Expense-Building	~	7,100
Utilities Expense	~	7,300
Repairs Expense	~	2,800
Insurance Expense	~	2,000
Miscellaneous Expense	~	5,800
	~	1,157,700	1,157,700

	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. CHART OF ACCOUNTS Finders Investigative Services General Ledger ASSETS 11 Cash 12 Accounts Receivable 13 Supplies 14 Prepaid Insurance 16 Building 17 Accumulated Depreciation-Building LIABILITIES 21 Accounts Payable 22 Salaries Payable 23 Unearned Rent EQUITY 31 Stacy Tanner, Capital 32 Stacy Tanner, Drawing 33 Income Summary REVENUE 41 Service Fees 42 Rent Revenue EXPENSES 51 Salaries Expense 52 Rent Expense 53 Supplies Expense 54 Depreciation Expense-Building 55 Utilities Expense 56 Repairs Expense 57 Insurance Expense 59 Miscellaneous Expense Labels Current assets Current liabilities Expenses For the Year Ended June 30, 2019 June 30, 2019 Property, plant, and equipment Revenues Amount Descriptions Decrease in owner’s equity Increase in owner’s equity Net income Net loss Stacy Tanner, capital, July 1, 2018 Stacy Tanner, capital, June 30, 2019 Total assets Total current assets Total expenses Total liabilities Total liabilities and owner’s equity Total property, plant, and equipment Total revenues Withdrawals

Answer 1