Foxy Investigative Services is an investigative services firm that is owned and operated by Shirley Vickers. On November 30, 20Y8, 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, 20Y8   ~ Adjusted Trial Balance Account Title ~ Dr. Cr.   ~     Cash ~ 21,000   Accounts Receivable ~ 70,600   Supplies ~ 4,700   Prepaid Insurance ~ 2,500   Building ~ 438,500   Accumulated Depreciation-Building ~   43,800 Accounts Payable ~   11,700 Salaries Payable ~   3,400 Unearned Rent ~   1,900 Common Stock ~   80,000 Retained Earnings ~   295,000 Dividends ~ 12,000   Service Fees ~   711,800 Rent Revenue ~   12,000 Salaries Expense ~ 524,300   Rent Expense ~ 48,000   Supplies Expense ~ 10,800   Depreciation Expense-Building ~ 7,800   Utilities Expense ~ 7,200   Repairs Expense ~ 2,900   Insurance Expense ~ 2,800   Miscellaneous Expense ~ 6,500     ~ 1,159,600 1,159,600             Required: 1. A. Prepare an income statement for the year ended November 30, 20Y8. 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 statement of stockholders’ equity for the year ended November 30, 20Y8. 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. 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, 20Y8. 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. 2. Based upon the end-of-period spreadsheet, journalize the closing entries. Refer to the Chart of Accounts for exact wording of account titles. 3. If Retained Earnings had instead decreased $37,000 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. CHART OF ACCOUNTS Foxy Investigative Services General Ledger   ASSETS 11 Cash 12 Accounts Receivable 13 Supplies 14 Prepaid Insurance 17 Building 18 Accumulated Depreciation-Building   LIABILITIES 21 Accounts Payable 22 Salaries Payable 23 Unearned Rent   EQUITY 31 Common Stock 32 Retained Earnings 33 Dividends   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 November 30, 20Y8   November 30, 20Y8   Property, plant, and equipment   Revenues   Amount Descriptions   Balances, December 1, 20Y7   Balances, November 30, 20Y8   Dividends   Net income   Net loss   Total assets   Total current assets   Total expenses   Total liabilities   Total liabilities and stockholders’ equity   Total property, plant, and equipment   Total revenues   Total stockholders’ equity 1A. Prepare an income statement for the year ended November 30, 20Y8. 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.   Foxy Investigative Services Income Statement   1       2       3       4       5       6       7       8       9       10       11       12       13       14       15         1B. Prepare a statement of stockholders’ equity for the year ended November 30, 20Y8. 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. 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.   Foxy Investigative Services Statement of Stockholders’ Equity   1   Common Stock Retained Earnings Total 2         3         4         5

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Foxy Investigative Services is an investigative services firm that is owned and operated by Shirley Vickers. On November 30, 20Y8, 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, 20Y8
  ~ Adjusted Trial Balance
Account Title ~ Dr. Cr.
  ~    
Cash ~ 21,000  
Accounts Receivable ~ 70,600  
Supplies ~ 4,700  
Prepaid Insurance ~ 2,500  
Building ~ 438,500  
Accumulated Depreciation-Building ~   43,800
Accounts Payable ~   11,700
Salaries Payable ~   3,400
Unearned Rent ~   1,900
Common Stock ~   80,000
Retained Earnings ~   295,000
Dividends ~ 12,000  
Service Fees ~   711,800
Rent Revenue ~   12,000
Salaries Expense ~ 524,300  
Rent Expense ~ 48,000  
Supplies Expense ~ 10,800  
Depreciation Expense-Building ~ 7,800  
Utilities Expense ~ 7,200  
Repairs Expense ~ 2,900  
Insurance Expense ~ 2,800  
Miscellaneous Expense ~ 6,500  
  ~ 1,159,600 1,159,600
       
 
  Required:
1.
A. Prepare an income statement for the year ended November 30, 20Y8. 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 statement of stockholders’ equity for the year ended November 30, 20Y8. 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. 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, 20Y8. 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.
2. Based upon the end-of-period spreadsheet, journalize the closing entries. Refer to the Chart of Accounts for exact wording of account titles.
3. If Retained Earnings had instead decreased $37,000 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.
CHART OF ACCOUNTS
Foxy Investigative Services
General Ledger
  ASSETS
11 Cash
12 Accounts Receivable
13 Supplies
14 Prepaid Insurance
17 Building
18 Accumulated Depreciation-Building
  LIABILITIES
21 Accounts Payable
22 Salaries Payable
23 Unearned Rent
  EQUITY
31 Common Stock
32 Retained Earnings
33 Dividends
  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 November 30, 20Y8  
November 30, 20Y8  
Property, plant, and equipment  
Revenues  
Amount Descriptions  
Balances, December 1, 20Y7  
Balances, November 30, 20Y8  
Dividends  
Net income  
Net loss  
Total assets  
Total current assets  
Total expenses  
Total liabilities  
Total liabilities and stockholders’ equity  
Total property, plant, and equipment  
Total revenues  
Total stockholders’ equity
1A. Prepare an income statement for the year ended November 30, 20Y8. 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.
 
Foxy Investigative Services
Income Statement
 
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1B. Prepare a statement of stockholders’ equity for the year ended November 30, 20Y8. 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. 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.
 
Foxy Investigative Services
Statement of Stockholders’ Equity
 
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Common Stock
Retained Earnings
Total
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