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

1. A.

Income Statement
Revenue
Service Fees	$     6,75,500
Rent Revenue	$           9,000
Total Revenue		$     6,84,500
Expenses
Depreciation Expense - Building	$        10,000
Salaries Expense	$     4,35,000
Insurance Expense	$           3,000
Rent Expense	$        55,000
Supplies Expense	$        11,850
Repairs Expense	$           4,250
Miscellaneous Expense	$        11,100
Utilities Expense	$           8,800
Total Expenses		$     5,39,000
Net Income		$     1,45,500

B.

Statement of Retained Earnings
Beginning Balance	$        70,300
Add: Net Income	$     1,45,500
	$     2,15,800
Less : Dividend	$       -30,000
Ending Balance	$     1,85,800

C.

Balance Sheet
Assets
Current Assets
Cash	$        27,500
Accounts Receivable	$        71,800
Supplies	$           3,550
Prepaid Insurance	$              750
Total Current Assets		$     1,03,600
Building	$     3,30,500
Less : Accumulated Depreciation	$    -1,84,100
Total Land, Buildings and Equipment		$     1,46,400
Total Assets		$     2,50,000
Liabilities & Stockholder's Equity
Current Liabilities
Accounts Payable	$        16,100
Salaries Payable	$           6,600
Unearned Rent	$           1,500
Total Current Liabilities		$        24,200
Long term Debt		$                 -
Shareholder's Equity
Common Stock	$        40,000
Retained Earnings	$     1,85,800
Total Shareholder's Equity		$     2,25,800
Total Liabilities & Shareholder's Equity		$     2,50,000

2.

Account Titles	Debit	Credit
Service Fees	$     6,75,500
Rent Revenue	$           9,000
Income Summary		$     6,84,500
Income Summary	$     5,39,000
Depreciation Expense - Building		$        10,000
Salaries Expense		$     4,35,000
Insurance Expense		$           3,000
Rent Expense		$        55,000
Supplies Expense		$        11,850
Repairs Expense		$           4,250
Miscellaneous Expense		$        11,100
Utilities Expense		$           8,800
Income Summary	$     1,45,500
Retained Earnings		$     1,45,500
Retained Earnings	$        30,000
Dividend		$        30,000

2. Net Income (Loss) = $30000 - $46000 = ($16000)