Foxy Investigative Services is an investigative services firm that is owned and
ID: 2543859 • Letter: F
Question
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:
Required:
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
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.
CHART OF ACCOUNTS
Foxy Investigative Services
General Ledger
ASSETS
11
Cash
12
Accounts Receivable
13
Supplies
14
Prepaid Insurance
17
Building
18
Accumulated Depreciation-Building
LIABILITIES
21
Accounts Payable
22
Salaries Payable
23
Unearned Rent
EQUITY
31
Common Stock
32
Retained Earnings
33
Dividends
34
Income Summary
REVENUE
41
Service Fees
42
Rent Revenue
EXPENSES
51
Salaries Expense
52
Rent Expense
53
Supplies Expense
54
Depreciation Expense-Building
55
Utilities Expense
56
Repairs Expense
57
Insurance Expense
59
Miscellaneous Expense
LabelsCurrent assetsCurrent liabilitiesExpensesFor the Year Ended November 30, 2018November 30, 2018Property, plant, and equipmentRevenuesAmount DescriptionsChange in retained earningsDividendsNet incomeNet lossRetained earnings, December 1, 2017Retained earnings, November 30, 2018Total assetsTotal current assetsTotal expensesTotal liabilitiesTotal liabilities and stockholders’ equityTotal property, plant, and equipmentTotal revenuesTotal stockholders’ equity
1A. 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.
Foxy Investigative Services
Income Statement
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
1B. 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.
Foxy Investigative Services
Retained Earnings Statement
1
2
3
4
5
1C. 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.
Foxy Investigative Services
Balance Sheet
1
Assets
2
3
4
5
6
7
8
9
10
11
12
13
Liabilities
14
15
16
17
18
19
Stockholders’ Equity
20
21
22
23
2. Based upon the end-of-period spreadsheet, journalize the closing entries. Refer to the Chart of Accounts for exact wording of account titles.
PAGE 11
JOURNAL
ACCOUNTING EQUATION
DATE
DESCRIPTION
POST. REF.
DEBIT
CREDIT
ASSETS
LIABILITIES
EQUITY
1
Closing Entries
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
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.
Required:
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
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.
CHART OF ACCOUNTS
Foxy Investigative Services
General Ledger
ASSETS
11
Cash
12
Accounts Receivable
13
Supplies
14
Prepaid Insurance
17
Building
18
Accumulated Depreciation-Building
LIABILITIES
21
Accounts Payable
22
Salaries Payable
23
Unearned Rent
EQUITY
31
Common Stock
32
Retained Earnings
33
Dividends
34
Income Summary
REVENUE
41
Service Fees
42
Rent Revenue
EXPENSES
51
Salaries Expense
52
Rent Expense
53
Supplies Expense
54
Depreciation Expense-Building
55
Utilities Expense
56
Repairs Expense
57
Insurance Expense
59
Miscellaneous Expense
Explanation / Answer
2.
3. Net loss $16000
1A. Foxy Investigative Services Income Statement For the Year Ended November 30, 2018 1 Revenues 2 Service fees 675500 3 Rent revenue 9000 4 Total revenues 684500 5 Expenses 6 Salaries expense 435000 7 Rent expense 55000 8 Supplies expense 11850 9 Depreciation expense-building 10000 10 Utilities expense 8800 11 Repairs expense 4250 12 Insurance expense 3000 13 Miscellaneous expense 11100 14 Total expenses 539000 15 Net income 145500 1B. Foxy Investigative Services Retained Earnings Statement For the Year Ended November 30, 2018 1 Retained earnings, December 1, 2017 70300 2 Net income 145500 3 Dividends -30000 4 Change in retained earnings 115500 5 Retained earnings, November 30, 2018 185800 1C. Foxy Investigative Services Balance Sheet November 30, 2018 1 Assets 2 Current assets 3 Cash 27500 4 Accounts receivable 71800 5 Supplies 3550 6 Prepaid insurance 750 7 Total current assets 103600 8 Property, plant, and equipment 9 Building 330500 10 Accumulated depreciation-building -184100 11 Total property, plant, and equipment 146400 12 Total assets 250000 13 Liabilities 14 Current liabilities 15 Accounts payable 16100 16 Salaries payable 6600 17 Unearned rent 1500 18 Total current liabilities 24200 19 Stockholders' Equity 20 Common stock 40000 21 Retained earnings 185800 22 Total stockholders' equity 225800 23 Total liabilities and stockholders' equity 250000Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.