A Financial statements and closing entries OBJ. 2, 3 Ironside Security Services is an investigative services firm that is owned and operated by Don Chadwell. On April 30, 2014, the end of the current fiscal year, the accountant for Ironside Security Services prepared an end-of-period spreadsheet, a part of which is shown as per below :
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Iron side Security Services End-of-Period Spreadsheet For the Year Ended April 30, 2014 |
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Adjusted |
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Trial Balance |
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Account Title |
Dr. |
Cr. |
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Cash |
18,000 |
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Accounts Receivable |
37,200 |
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Supplies |
7,500 |
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Prepaid Insurance |
4,800 |
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Building |
240,500 |
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Accumulated Depreciation—Building |
55,200 |
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Accounts Payable |
6,000 |
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Salaries Payable |
1,500 |
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Unearned Rent |
3,000 |
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Capital Stock |
35,000 |
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Retained Earnings |
144,300 |
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Dividends |
10,000 |
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Service Fees |
480,000 |
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Rent Revenue |
25,000 |
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Salaries Expense |
336,000 |
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Rent Expense |
62,500 |
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Supplies Expense |
12,000 |
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Depreciation Expense—Building |
6,000 |
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Utilities Expense |
4,400 |
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Repairs Expense |
3,200 |
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Insurance Expense |
2,800 |
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Miscellaneous Expense |
5,100 |
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750,000 |
750,000 |
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Instructions
1. Prepare an income statement, a retained earnings statement, and a balance sheet.
2. Journalize the entries that were required to close the accounts at April 30.
3. If Retained Earnings has instead decreased $47,500 after the closing entries were posted, and the dividends remained the same, what would have been the amount of net income or net loss?