Foxy Investigative Services_Financial statements and closing of books

Foxy Investigative Services is an investigative services firm that is owned and operated by Shirley Vickers. On November 30, 2018, the end of the fiscal year, the accountant for Foxy Investigative Services prepared an end-of-period spreadsheet, a part of which follows:

Foxy Investigative Services

End-of-Period Spreadsheet

For the Year Ended November 30, 2018

Adjusted Trial Balance

Account Title

Dr.

Cr.

Cash

25,000

Accounts Receivable

68,400

Supplies

4,400

Prepaid Insurance

2,500

Building

437,000

Accumulated Depreciation-Building

42,400

Accounts Payable

11,400

Salaries Payable

3,800

Unearned Rent

2,500

Common Stock

80,000

Retained Earnings

293,600

Dividends

11,700

Service Fees

712,850

Rent Revenue

11,700

Salaries Expense

524,000

Rent Expense

46,800

Supplies Expense

10,300

Depreciation Expense-Building

8,400

Utilities Expense

7,950

Repairs Expense

3,500

Insurance Expense

2,500

Miscellaneous Expense

5,800

1,158,250

Required:

A.	Prepare an income statement for the year ended November 30, 2018. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items other than account names. You will not need to enter colons (:) on the income statement. Refer to the Chart of Accounts for exact wording of account titles.
B.	Prepare a retained earnings statement for the year ended November 30, 2018. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items. Refer to the Chart of Accounts for exact wording of account titles. Refer to the lists of Labels and Amount Descriptions for exact wording of the answer choices for text entries other than account names.
C.	Prepare a balance sheet as of November 30, 2018. Fixed assets must be entered in order according to account number. Be sure to complete the statement heading. You will not need to enter colons (:) or the word "Less" on the balance sheet; they will automatically insert where necessary. Refer to the Chart of Accounts for exact wording of account titles. Refer to the lists of Labels and Amount Descriptions for exact wording of the answer choices for text entries other than account names. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Based upon the end-of-period spreadsheet, journalize the closing entries. Refer to the Chart of Accounts for exact wording of account titles.

If Retained Earnings had instead decreased $36,000 after the closing entries were posted, and the dividends remained the same, what would have been the amount of net income or net loss? If required, use a minus sign to indicate a net loss.

10 years ago

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