Financial Statements and Closing Entries

The Gorman Group is a financial planning services firm owned and operated by Nicole Gorman. As of October 31, 2019, 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, 2019
	Adjusted Trial Balance
Account Title	Dr.	Cr.
Cash	12,230
Accounts Receivable	26,620
Supplies	4,160
Prepaid Insurance	8,990
Land	95,000
Buildings	340,000
Accumulated Depreciation-Buildings		110,800
Equipment	246,000
Accumulated Depreciation-Equipment		144,400
Accounts Payable		31,490
Salaries Payable		3,120
Unearned Rent		1,410
Nicole Gorman, Capital		404,390
Nicole Gorman, Drawing	23,600
Service Fees		449,070
Rent Revenue		4,740
Salaries Expense	321,940
Depreciation ExpenseEquipment	17,500
Rent Expense	14,600
Supplies Expense	10,360
Utilities Expense	9,360
Depreciation ExpenseBuildings	6,240
Repairs Expense	5,160
Insurance Expense	2,830
Miscellaneous Expense	4,830
	1,149,420	1,149,420

Required:

1. Prepare an income statement.

Gorman Group Income Statement For the Year Ended October 31, 2019
Revenues:
	$
Total revenues		$
Expenses:
	$
Total expenses
Net income		$

Prepare a statement of owner's equity (no additional investments were made during the year).

Gorman Group Statement of Owner's Equity For the Year Ended October 31, 2019
		$
	$
		$

Prepare a balance sheet.

Gorman Group Balance Sheet October 31, 2019
Assets				Liabilities
Current assets:				Current liabilities:
		$			$
				Total liabilities		$
Total current assets			$
Property, plant, and equipment:				Owner's Equity
	$
	$
Total property, plant, and equipment
Total assets			$	Total liabilities and owner's equity		$

2. Journalize the entries that were required to close the accounts at October 31. For a compound transaction, if an amount box does not require an entry, leave it blank.

Date	Account	Debit	Credit
Oct. 31
Oct. 31

3. If the balance of Nicole Gorman, Capital had instead increased $115,000 after the closing entries were posted and the withdrawals remained the same, what would have been the amount of net income or net loss? $