Ironside Security Services is an investigative services firm that is owned and operated by Don Chadwell. On April 30, 2014, the end of the current fiscal year, the accountant for Ironside Security Services prepared an end-of-period spreadsheet, a part of which is shown below.

Instructions
1. Prepare an income statement, a retained earnings statement, and a balance sheet.
2. Journalize the entries that were required to close the accounts at April 30.
3. If Retained Earnings has instead decreased $47,500 after the closing entries were posted, and the dividends remained the same, what would have been the amount of net income or netloss?

Transcribed Image Text:

Ironside Security Services End-of-Period Spreads heet For the Year Ended April 30, 2014 Adjusted Trial Balance Account Title Cr. 18,000 37,200 7,500 4,800 240,500 Cash 9 Accounts Receivable 10 Supplies 11 Prepaid Insurance 12 Building 13 Accumulated Depreciation-Building 14 Accounts Payable 15 Salaries Payable 16 Uneamed Rent 17 Capital Stock 18 Retained Earnings 19 Dividends 20 Service Fees 21 Rent Revenue 55,200 6,000 1,500 3,000 35,000 144,300 10,000 480,000 25,000 Salaries Expense 23 Rent Expense 24 Supplies Expense 25 Depreciation Expense-Building 26 Utilities Expense 27 336,000 62,500 12,000 6,000 4,400 3,200 2,800 5,100 Repairs Expense 28 In surance Expense. 29 30 31 750,000750,000