Question

Instructions 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 vear, the accountant for Faxy Investigative Services prepared an end-of-period spreadsheet, a part of which follows Foxy Investigative Services End-of-Period 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

Answer 1

A. Preparation of Income Statement Foxy Investigative Services Income Statement For the Year Ended November 30, 20Y8 Amount ($) $ 714,800 $ $ 726,800 Particulars Service Fees Rent Revenue Total Revenue 12,000 Less : Operating Expense Salary Expense Rent Expense Supplies Expense Utilities Expense Depreciation Expense - Buildings Repairs Expense Insurance Expense Miscellaneous Expenses Total Operating Expenses Net Income $ 526,000 48,000 11,000 7,300 7,000 2,800 2,000 5,800 $ 609,900 $ 116,900 B. Preparation of the Statement of the Retained Earnings Foxy Investigative Services Statement of Retained Earnings For the Year Ended November 30, 20Y8 Amount ($) $ Particulars Opening Balance Add: Net Income 293,600 $ $ $ $ 116,900 410,500 (12,000) 398,500 Less: Dividends Ending Balance

C. Preparation of Balance Sheet Foxy Investigative Services Balance Sheet November 30, 20Y8 Amount ($) $ $ Amount ($) Particulars Particulars Current Assets Liabilities: Current Liabilities: Accounts Payable Salaries Payable $ $ $ $ Cash 28,000 71,000 - - $11,700 $2,500 $ 1,800 Accounts Receivables .........- .- - - -- --- - - Supplies Prepaid Insurance Total Current Assets 4,700 2,500 ......." Unearned Rent ----.....-- ----- - - - - - ------------------ $ 106,200 Total Current Liabilities $ 16,000 .......- Property, Plant and Equiment Total Liabilities $ 16,000 . Land -................. Stockholders' Equity Buildings Accumulated Depreciation - Buildings 432,500 - $ 80,000 $ 398,500 $ 478,500 $ (44,200) 388,300 Common Stock ........................................................................... Retained Earnings Total Stockholders' Equity 494,500 Total Liabilties and Stockholders' Equity $ 494,500 Total Assets sisisis

Journal Entries to Close Accounts: Particulars Debit Credit Service Fees $ $ 714,800 12,000 Rent Revenue $ 726,800 Income Statement $ Income Statement 609,900 $ 526,000 Salary Expense Rent Expense Supplies Expense Utilities Expense Depreciation Expense- Buildings Repairs Expense Insurance Expense Miscellaneous Expenses $ 48,000 $ 11,000 $ 7,300 7,000 $ 2,800 2,000 $ 5,800 $ 116,900 Income Statement $ 116,900 Retained Earnings Retained Earnings 12,000 $ Dividends 12,000