Outsider Company, from Problem 4-3B, prepared an end-of-period spreadsheet (work sheet), a part of which is shown below, at December 31, 2015, the end of the current fiscal year.

Instructions
1. Prepare an income statement, a statement of owner€™s equity (no additional investments were made during the year), and a balance sheet as at December 31.
2. Journalize the entries that were required to close the accounts at December 31.
3. If the balance of Walter Salva, Capital increased $40,000 after the closing entries were posted and the withdrawals remained the same, what was the amount of net income or net loss?

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Outsider Company End-of-Period Spreadsheet (Work Sheet For the Year Ended December 31, 2015 income Statement Balance Sheet Cr. Dr.Cr 12,000 52,500 Cash 6 Accounts Receivable 7Prepaid Insurance 8 Equipment 5,100 150,000 9 Accumulated Depreciation 10 Accounts Payable Equipmemt 39,000 5,500 1,200 2,500 135,800 11 Salaries Payable 12 Unearned Rent 13 Walter Salva, Capital 14 Walter Salva, Withdrawals 15 Service Fees 16 Rent Revenue 20,000 420,000 20,000 17 Salaries Expense 18 Rent Expense 19 Depreciation Expense 20 Insurance Expense 310,000 61,000 6,100 3,100 4,200 21 Miscellaneous Expense 384,400440,000 239,600 184,000 55,600 55,600 23 Net income 24 25 440000 440,000 239,600 239,600