Question

Instructions Chart Of Accounts Labels and Amount Descriptions Income Statement Retained Earnings Statement Balance S Instructions 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 Dr. Account Title Cr. Cash 27,500 Accounts Receivable 71,800 Supplies 3,550 750 Prepaid Insurance Building 330,500 184, 100 Accumulated Depreciation-Building Accounts Payable 16,100 Salaries Payable Unearned Rent Common Stock 6,600 1,500 40,000 70,300 Retained Earnings Dividends 30,000 Service Fees 675,500 9,000 Rent Revenue Salaries Expense 435,000 Rent Expense 55,000 11,850 Supplies Expense Depreciation Expense-Building Utilities Expense 10,000 8,800

Answer 1

	Foxy Investigative Services
1a)	Income Statement
	For the Year Ended November 30th,2018
	Revenue
	Service Fees	$ 6,75,500.00
	Rent Revenue	$       9,000.00
	Total Revenue=(A)		$   6,84,500.00
	Expenses
	Salaries Expense	$      4,35,000.00
	Rent Expense	$          55,000.00
	Supplies Expense	$          11,850.00
	Depreciation Expense-Building	$          10,000.00
	Utilities Expense	$            8,800.00
	Repairs Expense	$            4,250.00
	Insurance Expense	$            3,000.00
	Miscellaneous Expense	$          11,100.00
	Total Expenses=(B)		$   5,39,000.00
	Net Income=(A)-(B)		$   1,45,500.00
	Foxy Investigative Services
1b)	Statement of Owner's Equity
	For the Year Ended November 30th,2018
		Common Stock	Retained Earnings	Total
	Beginning Balance	$     40,000.00	$      70,300.00	$    1,10,300.00
	Add: Net Income		$   1,45,500.00	$    1,45,500.00
	Less: Dividend		$     -30,000.00	$      -30,000.00
	Balance	$     40,000.00	$   1,85,800.00	$    2,25,800.00
	Foxy Investigative Services
1C)	Balance Sheet
	As At Novemebr 30th,2018
	Assets
	Cash	$     27,500.00
	Accounts Receivable	$     71,800.00
	Supplies	$       3,550.00
	Prepaid Insurance	$          750.00
	Total Current Assets		$   1,03,600.00
	Building	$ 3,30,500.00
	Accumulated Depreciation-Building	$-1,84,100.00	$   1,46,400.00
	Total Assets		$   2,50,000.00
	Liabilities & Stockholder's equity
	Liabilities
	Accounts Payable	$     16,100.00
	Salaries Payable	$       6,600.00
	Unearned Rent	$       1,500.00
	Total Current Liabilities		$      24,200.00
	Stockholder's Equity
	Common Stock	$     40,000.00
	Retained Earnings	$ 1,85,800.00
	Total Stockholder's Equity		$   2,25,800.00
	Total Liabilities & Stockholder's Equity		$   2,50,000.00
2)	Foxy Investigative Services
	Post Closing Entries
	Particular	Debit	Credit
	Service Fees	$    6,75,500.00
	Rent Revenue	$         9,000.00
	To Income Summary		$      6,84,500.00
	(Being amount of service fees and Rent Revenue transfereed to Income Summary)
	Income Summary	$    5,39,000.00
	To Salaries Expense		$      4,35,000.00
	To Rent Expense		$        55,000.00
	To Supplies Expense		$        11,850.00
	To Depreciation Expense-Building		$        10,000.00
	To Utilities Expense		$          8,800.00
	To Repairs Expense		$          4,250.00
	To Insurance Expense		$          3,000.00
	To Miscellaneous Expense		$        11,100.00
	(Expenses transferred to Income Summary Account)
	Retained Earnings	$       30,000.00
	To Dividend		$        30,000.00
	(Dividend transferred to Retained Earnings Accounts)
	Income Summary	$    1,45,500.00
	To Retained Earnings		$      1,45,500.00
	(Being Net Income Transferred to Retained Earnings)