Question: Foxy Investigative Services is an investigative
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:
Instructions:
1. Prepare an income statement, a statement of stockholders’ equity, and a balance sheet.
2. Journalize the entries that were required to close the accounts at November 30, 20Y8. No additional common stock was issued during the year ended November 30, 20Y8.
3. If Retained Earnings had instead decreased $46,000 after the closing entries were posted, and the dividends remained the same, what would have been the amount of net income or net loss?
Transcribed Image Text:
A. Foxy Investigative Services End-of-Period Spreads heet For the Year Ended November 30, 20Y8 Adjusted 1 2 3 4 Trial Balance 6 Account Title Dr. Cr. 8 Cash 27,500 71,800 3,550 9 Accounts Receivable 10 Supplies 11 Prepaid Insurance 12 Building 13 Accumulated Depreciation-Building 14 Accounts Payable 15 Salaries Payable 16 Unearned Rent 17 Common Stock 18 Retained Earnings 19 Dividends 20 Service Fees 21 Rent Revenue 22 Salaries Expense 23 Rent Expense 24 Supplies Expense 25 Depreciation Expense-Building 26 Utilities Expense 27 Repairs Expense 28 Insurance Expense 29 Miscellaneous Expense 30 750 330,500 184,100 16,100 6,600 1,500 40,000 70,300 30,000 675,500 9,000 435,000 55,000 11,850 10,000 8,800 4,250 3,000 11,100 1,003,100 1,003,100
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