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Financial Statements and Closing Entries The Gorman Group is a financial planning services firm owned and operated by Nicole Gorman. As of October 31, 2049,

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Financial Statements and Closing Entries The Gorman Group is a financial planning services firm owned and operated by Nicole Gorman. As of October 31, 2049, the end of the fiscal year, the accountant for The Gorman Group prepared an end-of-period spreadsheet, part of which follows: Cr. The Gorman Group End-of-Period Spreadsheet For the Year Ended October 31, 2049 Adjusted Trial Balance Account Title Dr. Cash $11,470 Accounts Receivable 24,960 Supplies 3,900 Prepaid Insurance 8,420 Land 89,000 Buildings 319,000 Accumulated Depreciation-Buildings 103,900 Equipment 230,000 Accumulated Depreciation Equipment 135,300 Accounts Payable 29,520 Salaries Payable 2,930 Unearned Rent 1,330 Common Stock 133,000 Retained Earnings 245,780 Dividends 22,200 Service Fees 421,010 Calculator QUI 2400 3,900 8,420 89,000 319,000 103,900 230,000 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 135,300 29,520 2,930 1,330 133,000 245,780 22,200 421,010 4,450 301,820 16,400 13,700 9,710 8,780 5,850 4,840 2,650 4,520 1,077,220 1,077,220 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 Balance Sheet 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' equ Balance Sheet October 31, 2019 Liabilities Current liabilities: Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity Date Account Debit Credit 2019 Oct. 31 2019 Oct. 31 3. If the balance of Retained earnings had instead increased $31,000 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

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