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 $16,080 Accounts Receivable 35,010 Supplies 5,470 Prepaid Insurance 11,820 Land 124,000 Buildings 448,000 Accumulated Depreciation-Buildings 145,700 Equipment 323,000 Accumulated Depreciation Equipment 189,800 Accounts Payable 41,410 Salaries Payable 4,100 Unearned Rent 1,860 Common Stock 186,000 Retained Earnings 345,490 Dividends 31,100 Service Fees 590.490 1,860 186,000 345,490 31,100 590,490 6,240 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 423,320 23,000 19,300 13,620 12,310 8,210 6,780 3,720 6,350 1,511,090 1,511,090 Required: 1. Prepare an income statement. The Gorman Group Income Statement For the Year Ended October 31, 2018 Revenues: 1. Prepare an income statement. The Gorman Group Income Statement For the Year Ended October 31, 2018 Revenues: Total Revenues Expenses: Total 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 balance sheet. The Gorman Group Balance Sheet October 31, 2018 Assets Liabilities Current assets: Current liabilities: III II 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 Date Account Debit Credit 2018 Oct. 31 Close revenues Oct. 31 Close expenses Oct. 31 Close income/loss Oct. 31 Close income/loss Oct. 31 Close dividends eased $43,500 entries were posted, and dividends remained the same, what would have been the amount of income or loss? 3. If Retain nings had Enter all amounts as positive numbers. 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 $16,080 Accounts Receivable 35,010 Supplies 5,470 Prepaid Insurance 11,820 Land 124,000 Buildings 448,000 Accumulated Depreciation-Buildings 145,700 Equipment 323,000 Accumulated Depreciation Equipment 189,800 Accounts Payable 41,410 Salaries Payable 4,100 Unearned Rent 1,860 Common Stock 186,000 Retained Earnings 345,490 Dividends 31,100 Service Fees 590.490 1,860 186,000 345,490 31,100 590,490 6,240 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 423,320 23,000 19,300 13,620 12,310 8,210 6,780 3,720 6,350 1,511,090 1,511,090 Required: 1. Prepare an income statement. The Gorman Group Income Statement For the Year Ended October 31, 2018 Revenues: 1. Prepare an income statement. The Gorman Group Income Statement For the Year Ended October 31, 2018 Revenues: Total Revenues Expenses: Total 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 balance sheet. The Gorman Group Balance Sheet October 31, 2018 Assets Liabilities Current assets: Current liabilities: III II 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 Date Account Debit Credit 2018 Oct. 31 Close revenues Oct. 31 Close expenses Oct. 31 Close income/loss Oct. 31 Close income/loss Oct. 31 Close dividends eased $43,500 entries were posted, and dividends remained the same, what would have been the amount of income or loss? 3. If Retain nings had Enter all amounts as positive numbers
