Outsider Company is an investigative services firm that is owned and operated by Walter Salva. On December 31, 2015, the end of the current fiscal year, the accountant for Outsider Company prepared an adjusted trial balance, which is shown below.

Instructions
1. Prepare a single-step income statement, statement of owner€™s equity (no additional investments were made during the year), and a balance sheet as at December 31, 2015.
2. Journalize the entries that were required to close the accounts at December 31.
3. If Walter Salva, Capital decreased $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 Adjusted Trial Balance December 31, 2015 12,000 52,500 5,100 150,000 Cash Prepaid Insurance.. Equipment Accumulated DepreciationEquipment Accounts Payable Salaries Payable. 39,000 5,500 1,200 2,500 135,800 Unearned Rent Walter Salva, Capital 20,000 420,000 20,000 310,000 61,000 6,100 4,200 3,100 624,000 Salaries Expens Depreciation Expense.... Miscellaneous Expense Insurance Expense 624,000