Reference no: EM13555755

A Financial statements and closing entries OBJ. 2, 3 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 as per below :

Iron side Security Services End-of-Period Spreadsheet For the Year Ended April 30, 2014
	Adjusted
	Trial Balance
Account Title	Dr.	Cr.
Cash	18,000
Accounts Receivable	37,200
Supplies	7,500
Prepaid Insurance	4,800
Building	240,500
Accumulated Depreciation-Building		55,200
Accounts Payable		6,000
Salaries Payable		1,500
Unearned Rent		3,000
Capital Stock		35,000
Retained Earnings		144,300
Dividends	10,000
Service Fees		480,000
Rent Revenue		25,000
Salaries Expense	336,000
Rent Expense	62,500
Supplies Expense	12,000
Depreciation Expense-Building	6,000
Utilities Expense	4,400
Repairs Expense	3,200
Insurance Expense	2,800
Miscellaneous Expense	5,100
	750,000	750,000

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 net loss?