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	$12,200
Accounts Receivable	26,560
Supplies	4,150
Prepaid Insurance	8,960
Land	94,000
Buildings	340,000
Accumulated Depreciation-Buildings		110,600
Equipment	245,000
Accumulated Depreciation-Equipment		144,000
Accounts Payable		31,420
Salaries Payable		3,110
Unearned Rent		1,410
Common Stock		141,000
Retained Earnings		262,060
Dividends	23,600
Service Fees		447,990
Rent Revenue		4,730
Salaries Expense	321,170
Depreciation Expense-Equipment	17,400
Rent Expense	14,600
Supplies Expense	10,330
Utilities Expense	9,340
Depreciation Expense-Buildings	6,230
Repairs Expense	5,150
Insurance Expense	2,820
Miscellaneous Expense	4,810
	1,146,320	1,146,320

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 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
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
Oct. 31 Close expenses
Oct. 31 Close income/loss
Oct. 31 Close dividends

3. If Retained Earnings had instead decreased $33,000 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. $