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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Financial statements and closing entries

Finders Investigative Services is an investigative services firm that is owned and operated by Stacy Tanner. On June 30, 2016, the end of the fiscal year, the accountant for Finders Investigative Services prepared an end-of-period spreadsheet, a part of which follows:

Account Title

Debits

Credits

Cash

28,000

 

Accounts Receivable

69,600

 

Supplies

4,600

 

Prepaid Insurance

2,500

 

Building

439,500

 

Accumulated Depreciation – building

 

44,200

Accounts Payable

 

11,700

Salaries Payable

 

3,000

Unearned Rent

 

2,000

Stacy Tanner, Capital

 

373,800

Stacy Tanner, Drwaing

12,000

 

Service Fees

 

718,000

Rent Revenue

 

12,000

Salaries Expense

522,100

 

Rent Expense

48,000

 

Supplies Expense

10,800

 

Depreciation Expense – Building

8,750

 

Utilities Expense

7,150

 

Repairs Expense

3,000

 

Insurance Expense

2,500

 

Miscellaneous Expense

6,200

 

Total

1,164,700

1,164,700

 

Instructions

  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.
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