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Suspicions Company is an investigative services firm that is owned and operated by Curtis Graves. On November 30, 2010, the end of the current fiscal year, the accountant for Suspicions Company prepared an end-of-period spreadsheet (work sheet), a part of which is shown below.
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 November 30.
3. If Curtis Graves, 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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