The Income Statement columns in the end-of-period spreadsheet show that debits are equal to $55,800 and credits are $77,520. What does this information mean to the accountant?
a. net income of $21,720
b. net loss of $21,720
c. the accounts are out of balance, indicating an error has been made
d. the accounts have not been updated
The Income Statement columns in the end-of-period spreadsheet show that debits are equal to $55,800 and credits are $77,520. What does this information mean to the accountant?
| a. | net income of $21,720 |
| b. net loss of $21,720 | |
| c. the accounts are out of balance, indicating an error has been made | |
| d. the accounts have not been updated |
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Related questions
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:
Required: | |||||
|---|---|---|---|---|---|
Finders Investigative Services | |||||
End-of-Period Spreadsheet | |||||
For the Year Ended June 30, 2016 | |||||
~ | Adjusted Trial Balance | ||||
Account Title | ~ | Dr. | Cr. | ||
~ | |||||
Cash | ~ | 20,300 | |||
Accounts Receivable | ~ | 69,400 | |||
Supplies | ~ | 4,600 | |||
Prepaid Insurance | ~ | 2,500 | |||
Building | ~ | 434,000 | |||
Accumulated Depreciation-Building | ~ | 42,000 | |||
Accounts Payable | ~ | 11,600 | |||
Salaries Payable | ~ | 3,000 | |||
Unearned Rent | ~ | 1,800 | |||
Stacy Tanner, Capital | ~ | 372,000 | |||
Stacy Tanner, Drawing | ~ | 11,900 | |||
Service Fees | ~ | 708,650 | |||
Rent Revenue | ~ | 11,900 | |||
Salaries Expense | ~ | 523,900 | |||
Rent Expense | ~ | 47,600 | |||
Supplies Expense | ~ | 10,800 | |||
Depreciation Expense-Building | ~ | 7,500 | |||
Utilities Expense | ~ | 7,250 | |||
Repairs Expense | ~ | 2,800 | |||
Insurance Expense | ~ | 2,800 | |||
Miscellaneous Expense | ~ | 5,600 | |||
~ | 1,150,950 | 1,150,950 | |||
1. | Prepare an income statement, a statement of ownerâs equity (noadditional investments were made during the year), and a balancesheet. * | ||||
2. | Journalize the entries that were required to close the accountsat June 30. * | ||||
3. | If Stacy Tanner, Capital has instead decreased $30,000 after theclosing entries were posted, and the withdrawals remained the same,what would have been the amount of net income or net loss?
| ||||
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 SpreadsheetFor the Year Ended June 30, 2016 ~ Adjusted Trial Balance AccountTitle ~ Dr. Cr. ~ Cash ~ 20,300 Accounts Receivable ~ 69,400Supplies ~ 4,600 Prepaid Insurance ~ 2,500 Building ~ 434,000Accumulated Depreciation-Building ~ 42,000 Accounts Payable ~11,600 Salaries Payable ~ 3,000 Unearned Rent ~ 1,800 Stacy Tanner,Capital ~ 372,000 Stacy Tanner, Drawing ~ 11,900 Service Fees ~708,650 Rent Revenue ~ 11,900 Salaries Expense ~ 523,900 RentExpense ~ 47,600 Supplies Expense ~ 10,800 DepreciationExpense-Building ~ 7,500 Utilities Expense ~ 7,250 Repairs Expense~ 2,800 Insurance Expense ~ 2,800 Miscellaneous Expense ~ 5,600 ~1,150,950 1,150,950 Required: 1. Prepare an income statement, astatement of ownerâs equity (no additional investments were madeduring the year), and a balance sheet. * 2. Journalize the entriesthat were required to close the accounts at June 30. * 3. If StacyTanner, Capital has instead decreased $30,000 after the closingentries were posted, and the withdrawals remained the same, whatwould have been the amount of net income or net loss? * Be sure toread the instructions for each financial statement carefully. Referto the chart of accounts and the list of Labels and AmountDescriptions provided for the exact wording of the answer choicesfor text entries.
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 InvestigativeServices | |||
| End-of-PeriodSpreadsheet | |||
| For the Year Ended June30, 2016 | |||
| ~ | Adjusted TrialBalance | ||
| Account Title | ~ | Dr. | Cr. |
| ~ | |||
| Cash | ~ | 28,000 | |
| Accounts Receivable | ~ | 69,400 | |
| Supplies | ~ | 4,500 | |
| Prepaid Insurance | ~ | 2,500 | |
| Building | ~ | 432,000 | |
| Accumulated Depreciation-Building | ~ | 43,400 | |
| Accounts Payable | ~ | 11,100 | |
| Salaries Payable | ~ | 3,300 | |
| Unearned Rent | ~ | 1,700 | |
| Common Stock | ~ | 80,000 | |
| Retained Earnings | ~ | 293,400 | |
| Dividends | ~ | 11,400 | |
| Service Fees | ~ | 707,150 | |
| Rent Revenue | ~ | 11,400 | |
| Salaries Expense | ~ | 522,100 | |
| Rent Expense | ~ | 45,600 | |
| Supplies Expense | ~ | 10,800 | |
| Depreciation Expense-Building | ~ | 7,200 | |
| Utilities Expense | ~ | 7,150 | |
| Repairs Expense | ~ | 2,700 | |
| Insurance Expense | ~ | 2,500 | |
| Miscellaneous Expense | ~ | 5,600 | |
| ~ | 1,151,450 | 1,151,450 | |
| Required: | |||||||
| 1. |
| ||||||
| 2. | Based upon the end-of-periodspreadsheet, journalize the closing entries. | ||||||
| 3. | If Retained Earnings has instead decreased $33,000 after theclosing entries were posted, and the dividends remained the same,what would have been the amount of net income or net loss? Trying to find out whats the income statement, RetainedEarnings Statement,Balance Sheet, Journal, and 3. IfRetained Earnings has instead decreased $33,000 after the closingentries were posted, and the dividends remained the same, whatwould have been the amount of net income or net loss? If required,use the minus sign to indicate a net loss. |
