The Nevus Company is an investigative services firm that is owned and operated by Stacey Vargas. On April 30, 2008, the end of the current fiscal year, the accountant for The Nevus Company prepared an end-of-period spreadsheet (work sheet), a part of which is shown at the top of the following page.

Instructions
1. Prepare an income statement, statement of owner's equity (no additional investments were made during the year), and a balance sheet.
2. Journalize the entries that were required to close the accounts at April 30.
3. If Stacey Vargas, Capital decreased $35,000 after the closing entries were posted, and the withdrawals remained the same, what was the amount of net income or netloss?

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The Nevus Company End-of-Period Spreadsheet (Work Sheet) For the Year Ended April 30, 2008 Income Statement Balance Sheet 9,000 37 200 3,500 4,800 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment 55.200 10,500 2,500 3,000 142,800 Accounts Payable Salaries Payable Unearned Rent Stacey Vargas, Capital Stacey Vargas, Drawing Service Fees Rent Revenue Salary Expense 363,000 7,000 37,000 8,000 Rent Expense Supplies Expense Depreciation Expense- Equipment 7,000 Utilities Expense Repairs Expense nsurance Expense Miscellaneous Expense 6,400 6,200 4,800 Net income 370,000 370000 240000 240000