Financial Statements and Closing Entries

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:

The Gorman Group End-of-Period Spreadsheet For the Year Ended October 31, 20Y9
	Adjusted Trial Balance
Account Title	Dr.	Cr.
Cash	$11,030
Accounts Receivable	24,000
Supplies	3,750
Prepaid Insurance	8,100
Land	85,000
Buildings	307,000
Accumulated Depreciation-Buildings		99,900
Equipment	222,000
Accumulated Depreciation-Equipment		130,100
Accounts Payable		28,390
Salaries Payable		2,810
Unearned Rent		1,280
Common Stock		128,000
Retained Earnings		236,780
Dividends	21,300
Service Fees		404,810
Rent Revenue		4,280
Salaries Expense	290,210
Depreciation Expense-Equipment	15,800
Rent Expense	13,200
Supplies Expense	9,340
Utilities Expense	8,440
Depreciation Expense-Buildings	5,630
Repairs Expense	4,650
Insurance Expense	2,550
Miscellaneous Expense	4,350
	1,036,350	1,036,350

Required:

1. Prepare an income statement.

The Gorman Group Income Statement For the Year Ended October 31, 20Y9
Revenues:
Service fees	$fill in the blank 2
Rent revenue	fill in the blank 4
Total revenues		$fill in the blank 5
Expenses:
Salaries expense	$fill in the blank 7
Depreciation expense-equipment	fill in the blank 9
Rent expense	fill in the blank 11
Supplies expense	fill in the blank 13
Utilities expense	fill in the blank 15
Depreciation expense-buildings	fill in the blank 17
Repairs expense	fill in the blank 19
Insurance expense	fill in the blank 21
Miscellaneous expense	fill in the blank 23
Total expenses		fill in the blank 24
Net loss		$fill in the blank 26

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, 20Y9
	Common stock	Retained earnings	Total
Balances, November 1, 20Y8	$fill in the blank 28	$fill in the blank 29	$fill in the blank 30
	fill in the blank 32	fill in the blank 33	fill in the blank 34
	fill in the blank 36	fill in the blank 37	fill in the blank 38
	$fill in the blank 40	$fill in the blank 41	$fill in the blank 42

Prepare a balance sheet.

The Gorman Group Balance Sheet October 31, 20Y9
Assets				Liabilities
Current assets:				Current liabilities:
Cash		$fill in the blank 44			$fill in the blank 46
Accounts receivable		fill in the blank 48			fill in the blank 50
Supplies		fill in the blank 52			fill in the blank 54
Prepaid insurance		fill in the blank 56		Total liabilities		$fill in the blank 57
Total current assets			$fill in the blank 58
Property, plant, and equipment:				Stockholders' Equity
		$fill in the blank 60			$fill in the blank 62
	$fill in the blank 64				fill in the blank 66
	fill in the blank 68
		fill in the blank 70
	$fill in the blank 72
	fill in the blank 74
		fill in the blank 76
Total property, plant, and equipment			fill in the blank 77	Total stockholders' equity		fill in the blank 78
Total assets			$fill in the blank 79	Total liabilities and stockholders' equity		$fill in the blank 80

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	Credit
20Y9 Oct. 31		fill in the blank 82	fill in the blank 83
		fill in the blank 85	fill in the blank 86
		fill in the blank 88	fill in the blank 89
		fill in the blank 91	fill in the blank 92
		fill in the blank 94	fill in the blank 95
		fill in the blank 97	fill in the blank 98
		fill in the blank 100	fill in the blank 101
		fill in the blank 103	fill in the blank 104
		fill in the blank 106	fill in the blank 107
		fill in the blank 109	fill in the blank 110
		fill in the blank 112	fill in the blank 113
		fill in the blank 115	fill in the blank 116
20Y9 Oct. 31		fill in the blank 118	fill in the blank 119
		fill in the blank 121	fill in the blank 122

3. If the balance of Retained earnings had instead increased $29,800 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. $fill in the blank 123