Mather Services Company is a financial planning services firm owned and operated by Lee Mather. As of July 31, 2012, the end of the current fiscal year, the accountant for Mather Services Company prepared an end-of-period spreadsheet (Work sheet), 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 account at July 31.
3. If the balance of Retained Earnings increased $40,000 after the closing entries were posted, and the dividends remained the same, what was the amount of net income or netloss?

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Mather Services Company End-of-Period Spreadsheet For the Year Ended July 31, 2012 Adjusted Trial Balance 4 6 Account Title 7 Cash 8 Accounts Receivable 9 Supplies 10 Propaid Insurance 11 Land 12 Buildings 13 Accumulated Depreciation-Buildings 14 Equipment 15 Accumulated Depreciation-Equipment 16 Accounts Payable 17 Salaries Payable Dr. Cr. 11,000 28,150 6,350 9,500 100,000 360,000 117,200 260,000 151,700 33,300 3,300 18 Unearned Rent 1,500 19 Capital Stock 20 Retained Earnings 21 Dividends 22 Service Fees 23 Rent Revenue 24 Salaries Expense 25 Depreciation Expense-Equipment 26 Rent Expense 27 Supplies Expense 28 Utilities Expense 29 Depreciation Expense-Buildings 30 Repairs Expense 31 Insurance Expense 60,000 347,000 25,000 475,000 5,000 325,000 17,500 15,500 9,000 8,500 6,600 3,450 3,000 5,450 1,194,000 32 Miscellancous Expense 33 1,194,000