Financial statements and closing entries Obj. 2, 3 The Gorman Group is a financial planning services firm owned and operated by Nicole Gorman. As of October 31, 20Y9, the end of the fiscal year, the accountant for The Gorman Group prepared an end-of-period spreadsheet, part of which follows:

Instructions 1. Prepare an income statement, a statement of stockholders’ equity, and a balance sheet. During the year, no additional common stock was issued.
2. Journalize the entries that were required to close the accounts at October 31.
3. If the balance of Retained Earnings had instead increased $115,000 after the closing entries were posted, and the dividends remained the same, what would have been the amount of net income or net loss?AppendixLO1

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1 234u The Gorman Group End-of-Period Spreadsheet F For the Year Ended October 31, 20Y9 Adjusted Trial Balance 5 6 Account Title 7 8 Cash Dr. Cr. 11,000 9 Accounts Receivable 28,150 10 Supplies 6,350 11 Prepaid Insurance 9,500 12 Land 75,000 13 Buildings 250,000 14 Accumulated Depreciation-Buildings 117,200 15 Equipment 240,000 16 Accum. Depr.-Equipment 151,700 17 Accounts Payable 33,300 18 Salaries Payable 19 Unearned Rent 20 Common Stock 21 Retained Earnings 22 Dividends 3,300 1,500 25,000 195,000 20,000 23 Service Fees 468,000 24 Rent Revenue 5,000 25 Salaries Expense 291,000 26 Depreciation Expense-Equipment 17,500 27 Rent Expense 15,500 28 Supplies Expense 9,000 29 Utilities Expense 8,500 30 Depreciation Expense-Buildings 6,600 31 Repairs Expense 3,450 32 Insurance Expense 3,000 33 Miscellaneous Expense 5,450 34 1,000,000 1,000,000