Financial Statements and Closing Entries The Gorman Group is a financial planning services firm owned and operated by Nicole Gorman. As of October 31, 20Y3, 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, 20Y3 Adjusted Trial Balance Account Title Dr. Cr. Cash 11,000 Accounts Receivable 28,150 Supplies 6,350 Prepaid Insurance 9,500 Land 75,000 Buildings 250,000 Accumulated Depreciation-Buildings 117,200 Equipment 240,000 Accumulated Depreciation-Equipment 151,700 Accounts Payable 33,300 Salaries Payable 3,300 Unearned Rent 1,500 Nicole Gorman, Capital 220,000 Nicole Gorman, Drawing 20,000 Service Fees 468,000 Rent Revenue 5,000 Salaries Expense 291,000 Depreciation ExpenseEquipment 17,500 Rent Expense 15,500 Supplies Expense 9,000 Utilities Expense 8,500 Depreciation ExpenseBuildings 6,600 Repairs Expense 3,450 Insurance Expense 3,000 Miscellaneous Expense 5,450 1,000,000 1,000,000.

1. Prepare an income statement.

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

3.Prepare a balance sheet.

4. 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.

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?