Question

Finders Investigative Services is an investigative services firmthat is owned and operated by Stacy Tanner. On June 30, 2016, theend of the fiscal year , the accountant for Finders InvestigativeServices prepared an end-of-period spreadsheet, a part of whichfollows:

Finders Investigative Services End-of-Period Spreadsheet For theYear Ended June 30, 2016 ~ Adjusted Trial Balance Account Title ~Dr. Cr. ~ Cash ~ 28,000.00 Accounts Receivable ~ 69,600.00 Supplies~ 4,600.00 Prepaid Insurance ~ 2,500.00 Building ~ 439,500.00Accumulated Depreciation-Building ~ 44,200.00 Accounts Payable ~11,700.00 Salaries Payable ~ 3,000.00 Unearned Rent ~ 2,000.00Stacy Tanner, Capital ~ 373,800.00 Stacy Tanner, Drawing ~12,000.00 Service Fees ~ 718,000.00 Rent Revenue ~ 12,000.00Salaries Expense ~ 522,100.00 Rent Expense ~ 48,000.00 SuppliesExpense ~ 10,800.00 Depreciation Expense-Building ~ 8,750.00Utilities Expense ~ 7,150.00 Repairs Expense ~ 3,000.00 InsuranceExpense ~ 2,500.00 Miscellaneous Expense ~ 6,200.00 ~ 1,164,700.001,164,700.00 Required: 1. Prepare an income statement, a statementof owner’s equity (no additional investments were made during theyear), and a balance sheet. * 2. Journalize the entries that wererequired to close the accounts at June 30. * 3. If Stacy Tanner,Capital has instead decreased $30,000 after the closing entrieswere posted, and the withdrawals remained the same, what would havebeen the amount of net income or net loss? * Be sure to read theinstructions for each financial statement carefully. Refer to thechart of accounts and the list of Labels and Amount Descriptionsprovided for the exact wording of the answer choices for textentries.