Financial Statements and Closing Entries The Gorman Group is a financial planning services fim 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 $16,110 Accounts Receivable 35,070 Supplies 5,480 Prepaid Insurance 11,840 Land 125,000 Buildings 448,000 Accumulated Depreciation-Buildings 146,000 Equipment 324,000 Accumulated Depreciation-Equipment 190,200 Accounts Payable 41,480 Salaries Payable 4,110 Unearned Rent 1,860 Common Stock 186,000 Retained Earnings 316,620 Dividends 31,100 Service Fees 591,570 Rent Revenue 6,250 5,480 11,840 125,000 448,000 146,000 324,000 190,200 41,480 4,110 1,860 186,000 346,620 Supplies Prepaid Insurance Land Buildings Accumulated Depreciation-Buildings Equipment Accumulated Depreciation Equipment Accounts Payable Salaries Payable Unearned Rent Common Stock Retained Earnings Dividends Service Fees Rent Revenue Salaries Expense Depreciation Expense-Equipment Rent Expense Supplies Expense Utilities Expense Depreciation Expense-Buildings Repairs Expense Insurance Expense Miscellaneous Expense 31,100 591,570 6,250 424,100 23,000 19,300 13,650 12,330 8,220 6,800 3,730 6,360 1,514,090 1,514,090 Required: 1. Prepare an income statement. The Gorman Group Income Statement For the Year Ended October 31, 2019 Revenues: Total revenues Expenses: Total expenses Prepare a statement of stockholders' equity. During the year, no additional Common stock was issued. If an amount box does not require an entry, leave it blank. If a Net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. The Gorman Group Statement of Stockholders' Equity For the Year Ended October 31, 2019 Common stock Retained earnings Total Prepare a balance sheet. The Gorman Group Balance Sheet October 31, 2019 Assets Liabilities Current liabilities: Current assets: Total liabilities Total current assets October 31, 2019 Assets Liabilities Current assets: Current liabilities: Total liabilities Total current assets Property, plant, and equipment: Stockholders' Equity Total property, plant, and equipment Total stockholders' equity Total assets $ Total liabilities and stockholders' equity 2. Journalize the entries that were required to close the accounts at October 31. If an amount box does not require an entry, leave it blank. 2. Journalize the entries that were required to close the accounts at October 31. If an amount box does not require an entry, leave it blank. Date Account Debit 2019 Oct. 31 2019 Oct. 31 3. If the balance of Retained earnings had instead increased $43,600 after the closing entries were posted, and the dividends remained the same, what would have been the amount of Net income or Net loss? Enter all amounts as positive numbers
