Financial Statements and Closing Entries The Gorman Group is a financial planning services firm owned and operated by Nicole Gorman. As of October 31, 2018, 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, 2018 Adjusted Trial Balance Account Title Dr. Cr. Cash $11,440 Accounts Receivable 24,900 Supplies 3,890 Prepaid Insurance 8,400 Land 88,000 Buildings 318,000 Accumulated Depreciation-Buildings 103,600 Equipment 230,000 Accumulated Depreciation Equipment 135,000 Accounts Payable 29,450 Salaries Payable 2,920 Unearned Rent 1,320 Common Stock 132,000 Retained Earnings 245,390 Dividends 22,100 Service Fees 419,930 Rent Revenue 4,430 Salaries Expense 301,050 Depreciation Expense-Equipment 16,300 Rent Expense 13,700 Supplies Expense 9,690 Utilities Expense 8,750 Depreciation Expense-Buildings 5,840 Repairs Expense 4,820 Insurance Expense 2,650 Miscellaneous Expense 4,510 1,074,040 1,074,040 Required: 1. Prepare an income statement. The Gorman Group Income Statement For the Year Ended October 31, 2018 Revenues: Total Revenues Expenses: Total Expenses Net income Prepare a Retained Earnings Statement. The Gorman Group Retained Earnings Statement For the Year Ended October 31, 2018 Prepare a Retained Earnings Statement. The Gorman Group Retained Earnings Statement For the Year Ended October 31, 2018 Prepare a balance sheet. The Gorman Group Balance Sheet October 31, 2018 Assets Liabilities Current assets: Current liabilities: Total liabilities Total current assets Property, plant, and equipment: Stockholders' Equity The Gorman Group Balance Sheet October 31, 2018 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. For a compound transaction, if a box does not require an entry, leave it blank. Date Account Debit Credit 2018 Oct. 31 Close revenues 2. Journalize the entries that were required to close the accounts at October 31. For a compound transaction, if a box does not require an entry, leave it blank. Date Account Debit Credit 2018 Oct. 31 Close revenues Oct. 31 Close expenses Oct. 31 Close income/loss Oct. 31 Close dividends 3. If Retained Earnings had instead decreased $30,900 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
