The Ultra Services Company is a financial planning services firm owned and operated by Chad Tillman.

The Ultra Services Company is a financial planning services firm owned and operated by Chad Tillman. As of July 31, 2008, the end of the current fiscal year, the accountant for The Ultra Services Company prepared an end-of-period spreadsheet (work sheet), part of which is shown at the top of the next page.Instructions1. Prepare an income statement, a 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 July 31.3. If the balance of Chad Tillman, 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?The Ultra Services Company End-of-Period Spreadsheet (Work Sheet)For the Year Ended July 31, 2008Income StatementBalance SheetCash13,950Accounts Receivable41,880Supplies8,400Prepaid Insurance7,500Land180,000Buildings360,000Accumulated Depreciation—Buildings217,200Equipment258,270Accumulated Depreciation—Equipment122,700Accounts Payable33,300Salaries Payable3,300Unearned Rent1,500Chad Tillman, Capital340,500Chad Tillman, Drawing30,000Service Fees525,000Rent Revenue4,500Salary Expense219,000Depreciation Expense—Equipment28,500Rent Expense25,500Supplies Expense22,950Utilities Expense15,900Depreciation Expense—Buildings15,600Repairs Expense12,450Insurance Expense3,000Miscellaneous Expense5,100348,000529,500900,000718,500Net income181,500181,500529,500529,500900,000900,000