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 ServicesEnd-of-Period SpreadsheetFor the Year Ended June 30, 2019 ~Adjusted Trial BalanceAccount Title~Dr.Cr. ~ Cash~24,600 Accounts Receivable~71,400 Supplies~4,700 Prepaid Insurance~2,500 Building~432,500 Accumulated Depreciation-Building~ 42,700Accounts Payable~ 11,700Salaries Payable~ 2,500Unearned Rent~ 1,800Stacy Tanner, Capital~ 373,400Stacy Tanner, Drawing~12,000 Service Fees~ 713,600Rent Revenue~ 12,000Salaries 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 ~1,157,7001,157,700 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? 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

The financial statement refers that recording of financial activities of the business. In other words, it includes the income statement, Balance sheet, cash flow which includes the true picture of the business of the enterprises. 1) Income Statement Particulars Amount Revenues: Service Fees $ 7,13,600.00 Rent Revenue $ 12,000.00 Total revenues $ 7,25,600.00 Expenses: Salaries expense $ 5,26,000.00 Rent expense $ 48,000.00 Supplies Expense $ 11,000.00 Depreciation Expense-building $ 7,100.00 Utilities Expense $ 7,300.00 Repairs Expense $ 2,800.00 Insurance expense $ 2,000.00 Miscellaneous Expense $ 5,800.00 Total Expenses $ 610,000.00 Net Income $115,600.00 Statement of Owner's Equity For the year Ended June 30, 2019 Stacy Tanner Capital July 1 2018 $3,73,400.00 Add: Net Income $1,15,600.00 Total $489,000.00 Less: Stacy Tanner Drawings $12,000.00 Stacy Tanner capital June 30, 2019 $ 4,77,000.00Balance Sheet ASSETS Particulars Amount Current Assets: Cash $ 24,600.00 Accounts Receivables $ 71,400.00 Supplies $ 4,700.00 Prepaid Insurance $ 2,500.00 Total current assets $ 1,03,200.00 Property, Plant & Equipment: Building $ 4,32,500.00 (-) Accumulated Depreciation $ (42,700.00) Total Property, Plant & Equipment $ 3,89,800.00 Total Assets $ 4,93,000.00 LIABILITIES Current Liabilities: Accounts payable $ 11,700.00 Salaries payable $ 2,500.00 Unearned rent $ 1,800.00 Total Liabilities $ 16,000.00 Owner's Equity Stacy Tanner capital June 30, 2019 $ 4,77,000.00 Total Liabilities & Owner's Equity $ 9,70,000.00 2. Closing Entries Date Particulars Debit Amount Credit Amount June 30, 2019 Service Fees $ 7,13,600.00 Rent Revenue $ 12,000.00 Income Summary $ 7,25,600.00 (revenue accounts closed) June 30, 2019 Income Summary $ 6,10,000.00 Salaries expense $ 5,26,000.00 Rent expense $ 48,000.00 Supplies Expense $ 11,000.00 Depreciation Expense-building $ 7,100.00 Utility Expense $ 7,300.00 Repairs Expense $ 2,800.00 insurance expense $ 2,000.00 Miscellaneous Expense $ 5,800.00 (expenses account closed) June 30, 2019 Income Summary $ 1,15,600.00 S. T Capital $ 1,15,600.00 (Net income closed) June 30, 2019 S.T, Capital $ 12,000.00 S.T, Drawings $ 12,000.00 (drawings t/f to Capital account) 3. If capital has decreased by $30000 Particulars Amount Stacy Tanner Capital June 30, 2019 [calucated above] $4,77,000.00 (-) Decreased $30,000.00 New tanner Capital would have been $4,47,000.00 (-) Opening balance [given] $3,73,400.00 (-) Drawings $12,000.00 Net Income would have been $61,600.00 Hence, Net Income would have been $61,600

Answered: Prepare an income statement, a…

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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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:

Prepare an income statement, a statement of owner’s equity (no additional investments were made during the year), and a balance sheet.*

Journalize the entries that were required to close the accounts at June 30.*

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?

	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

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