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.

Answer 1