Question

Financial Statement and Closing entries.

GEOT 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: Foxy Investigative Services End-of-Perlod Spreadsheet For the Year Ended November 30, 20Y8 Adjusted Trial Balance Account Title Dr. Cr Cash 28,000 Accounts Receivable 71,000 Supplies 4,700 Prepaid Insurance 2,500 Building 432,500 Accumulated Depreciation Building 44,200 Accounts Payable 11,700 Salaries Payable 2.500 Uneamed Rent 1.800 Common Stock 80,000 Check My Work

and balance Sheet

Answer 1

1. Income Statement -

Foxy Investigative Services Income Statement For the Year ended November 30, 2018 Service Fees $ 714,800 Rent Revenue $ 12,000 Total Revenue $ 726,800 Expenses: Salaries Expenses $ 526,000 Rent Expense $ 48,000 Supplies Expenses $ 11,000 Depreciation Expense - Building $ 7,000 Utilities Expense $ 7,300 Repair Expense $ 2,800 Insurance Expense $ 2,000 Miscellaneous Expense $ 5,800 Total Expenses $ 609,900 Net Income $116,900

2. Statement of Stockholder's Equity -

Foxy Investigative Services Statement of Stockholder's Equity For the Year ended November 30, 2048 Common Stock $ 80,000 Retained Earnings, Opening $ 293,600 Add: Net Income $ 116,900 Less: Dividends $ (12,000) Retained Earnings, Closing $398,500 Total Stockholder's Equity $ 478,500

3. Balance Sheet -

Foxy Investigative Services Balance Sheet November 30, 2048 Assets Current Assets: Cash $ 28,000 Accounts Receivable $ 71,000 Supplies $ 4,700 Prepaid Insurance $ 2,500 Total Current Assets $ 106,200 Property Plant and Equipment: Building Accumulated Depreciation - Building $432,500 $ (44,200) $388,300 Total Assets $ 494,500 Liabilities and Stockholder's Equity Current Liabilities: Accounts Payable Salaries Payable Unearned Rent Total Current Liabilities $ 11,700 $ 2,500 $ 1,800 $ 16,000 Total Liabilities $ 16,000 Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity $ 80,000 $ 398,500 $478,500 Total Liabilities and Stockholder's Equity $ 494,500

4. Closing Entries -

Date Credit 1 Foxy Investigative Services Closing Entries Accounts Title Debit Service Fees $ 714,800 Rent Revenue $ 12,000 Income Summary (Being Revenue Account Closed) $726,800 2 Income Summary $ 609,900 Salaries Expenses Rent Expense Supplies Expenses Depreciation Expense - Building Utilities Expense Repair Expense Insurance Expense Miscellaneous Expense (Being Expenses accounts Closed) $526,000 $ 48,000 $ 11,000 $ 7,000 $ 7,300 $ 2,800 $ 2,000 $ 5,800 3 Income Summary $ 116,900 Retained Earnings (Being Balance Transfer to Retained Earnings) $116,900 4 Retained Earnings $ 12,000 Dividends (Being Dividend Account Closed) $ 12,000