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	$15,050
Accounts Receivable	32,770
Supplies	5,120
Prepaid Insurance	11,060
Land	116,000
Buildings	419,000
Accumulated Depreciation-Buildings		136,400
Equipment	303,000
Accumulated Depreciation-Equipment		177,700
Accounts Payable		38,760
Salaries Payable		3,840
Unearned Rent		1,740
Nicole Gorman, Capital		497,580
Nicole Gorman, Drawing	29,100
Service Fees		552,700
Rent Revenue		5,840
Salaries Expense	396,240
Depreciation ExpenseEquipment	21,500
Rent Expense	18,000
Supplies Expense	12,750
Utilities Expense	11,520
Depreciation ExpenseBuildings	7,680
Repairs Expense	6,350
Insurance Expense	3,480
Miscellaneous Expense	5,940
	1,414,560	1,414,560

Required:

1. Prepare an income statement.

Gorman Group Income Statement For the Year Ended October 31, 2019
Revenues:
	$
Total revenues		$
Expenses:
	$
Total expenses
Net income		$

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

Gorman Group Statement of Owner's Equity For the Year Ended October 31, 2019
		$
	$
		$

Prepare a balance sheet.

Gorman Group Balance Sheet October 31, 2019
Assets				Liabilities
Current assets:				Current liabilities:
		$			$
				Total liabilities		$
Total current assets			$
Property, plant, and equipment:				Owner's Equity
	$
Total property, plant, and building
Total assets			$	Total liabilities and owner's equity		$

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.

Date	Account	Debit	Credit
Oct. 31
Oct. 31

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? $