Financial Statements and Closing Entries

The Gorman Group is a financial planning services firm owned and operated by Nicole Gorman. As of October $31,20$Y$9,$ 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 $31,20$Y$9$

Adjusted Trial Balance

Account Title Dr$.$ Cr$.$

Cash $$17,580$

Accounts Receivable $38,270$

Supplies $5,980$

Prepaid Insurance $12,920$

Land $136,000$

Buildings $489,000$

Accumulated Depreciation$-$Buildings $159,300$

Equipment $353,000$

Accumulated Depreciation$-$Equipment $207,500$

Accounts Payable $45,270$

Salaries Payable $4,490$

Unearned Rent $2,030$

Common Stock $203,000$

Retained Earnings $377,440$

Dividends $34,000$

Service Fees $645,540$

Rent Revenue $6,820$

Salaries Expense $462,790$

Depreciation Expense$-$Equipment $25,100$

Rent Expense $21,000$

Supplies Expense $14,890$

Utilities Expense $13,460$

Depreciation Expense$-$Buildings $8,970$

Repairs Expense $7,420$

Insurance Expense $4,070$

Miscellaneous Expense $6,940$

$1,651,3901,651,390$

Required:

$1.$ Prepare an income statement.

The Gorman Group

Income Statement

For the Year Ended October $31,20$Y$9$

Revenues:

$fill in the blank $2$

fill in the blank $4$

Total revenues $fill in the blank $5$

Expenses:

$fill in the blank $7$

fill in the blank $9$

fill in the blank $11$

fill in the blank $13$

fill in the blank $15$

fill in the blank $17$

fill in the blank $19$

fill in the blank $21$

fill in the blank $23$

Total expenses fill in the blank $24$

$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 $31,20$Y$9$

Common stock Retained earnings Total

$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 $31,20$Y$9$

Assets Liabilities

Current assets: Current liabilities:

$fill in the blank $44$

$fill in the blank $46$

fill in the blank $48$

fill in the blank $50$

fill in the blank $52$

fill in the blank $54$

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

$20$Y$9$ 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 $116$

$20$Y$9$ 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 $$47,500$ 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 $123$