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 ~ 27,500 Accounts Receivable ~ 71,800 Supplies ~ 3,550 Prepaid Insurance ~ 750 Building ~ 330,500 Accumulated Depreciation-Building ~ 184,100 Accounts Payable ~ 16,100 Salaries Payable ~ 6,600 Unearned Rent ~ 1,500 Common Stock ~ 40,000 Retained Earnings ~ 70,300 Dividends ~ 30,000 Service Fees ~ 675,500 Rent Revenue ~ 9,000 Salaries Expense ~ 435,000 Rent Expense ~ 55,000 Supplies Expense ~ 11,850 Depreciation Expense-Building ~ 10,000 Utilities Expense ~ 8,800 Repairs Expense ~ 4,250 Insurance Expense ~ 3,000 Miscellaneous Expense ~ 11,100 ~ 1,003,100 1,003,100 Required: 1. 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. 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. 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 $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? If required, use a minus sign to indicate a net loss.

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 ~ 27,500 Accounts Receivable ~ 71,800 Supplies ~ 3,550 Prepaid Insurance ~ 750 Building ~ 330,500 Accumulated Depreciation-Building ~ 184,100 Accounts Payable ~ 16,100 Salaries Payable ~ 6,600 Unearned Rent ~ 1,500 Common Stock ~ 40,000 Retained Earnings ~ 70,300 Dividends ~ 30,000 Service Fees ~ 675,500 Rent Revenue ~ 9,000 Salaries Expense ~ 435,000 Rent Expense ~ 55,000 Supplies Expense ~ 11,850 Depreciation Expense-Building ~ 10,000 Utilities Expense ~ 8,800 Repairs Expense ~ 4,250 Insurance Expense ~ 3,000 Miscellaneous Expense ~ 11,100 ~ 1,003,100 1,003,100 Required: 1. 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. 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. 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 $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? If required, use a minus sign to indicate a net loss.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 5PA: The following selected accounts and their current balances appear in the ledger of Clairemont Co....

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Question

Foxy Investigative Services
End-of-Period Spreadsheet
For the Year Ended November 30, 2018
	~	Adjusted Trial Balance
Account Title	~	Dr.	Cr.
	~
Cash	~	27,500
Accounts Receivable	~	71,800
Supplies	~	3,550
Prepaid Insurance	~	750
Building	~	330,500
Accumulated Depreciation-Building	~		184,100
Accounts Payable	~		16,100
Salaries Payable	~		6,600
Unearned Rent	~		1,500
Common Stock	~		40,000
Retained Earnings	~		70,300
Dividends	~	30,000
Service Fees	~		675,500
Rent Revenue	~		9,000
Salaries Expense	~	435,000
Rent Expense	~	55,000
Supplies Expense	~	11,850
Depreciation Expense-Building	~	10,000
Utilities Expense	~	8,800
Repairs Expense	~	4,250
Insurance Expense	~	3,000
Miscellaneous Expense	~	11,100
	~	1,003,100	1,003,100

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. 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 $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? If required, use a minus sign to indicate a net loss.

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