1. Prepare an income statement.

Prepare a statement of owner's equity (no additional investments were made during the year.)

Prepare a balance sheet.

2. Journalize the entries that were required to close the accounts at October 31. For a compound transaction, if an amount box does not require an entry, leave it blank.

3. If the balance of Nicole Gorman, Capital had instead increased $115,000 after the closing entries were posted and the withdrawals remained the same, what would have been the amount of net income or net loss?

Financial Statements and Closing Entries The Gorman Group is a financial planning services firm owned and operated by Nicole Gorman. As of October 31, 2019, the end of the fiscal year, the accountant for The Gorman Group prepared an end-of-period spreadsheet, part of which follows: The Gorman Group End-of-Period Spreadsheet For the Year Ended October 31, 2019 Adjusted Trial Balance Account Title Dr. Cr. Cash 14,320 Accounts Receivable 31,170 Supplies 4,870 Prepaid Insurance 10,520 Land 111,000 Buildings 398.000 Accumulated Depreciation-Buildings 129,700 Equipment 288,000 Accumulated Depreciation-Equipment 169,000 36,870 Accounts Payable Salaries Payable 3,650 Unearned Rent 1,660 Nicole Gorman, Capital 473,320 Nicole Gorman, Drawing 27,700 Service Fees 525,720 Rent Revenue 5,550 Salaries Expense 376,890 Depreciation Expense-Equipment 20,500 Rent Expense 17,100 Supplies Expense 12,130 Utilities Expense 10,960 Depreciation Expense-Buildings 7,310 Repairs Expense 6,040 Insurance Expense 3,310 Miscellaneous Expense 5,650 1,345,470 1,345,470