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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, 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	$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

Required:

1. Prepare an income statement.

The Gorman Group Income Statement For the Year Ended October 31, 2019
Revenues:
Service fees	$
Rent revenue
Total Revenues		$
Expenses:
Salaries expense	$
Depreciation expense-equipment
Rent expense
Supplies expense
Utilities expense
Depreciation expense-buildings
Repairs expense
Insurance expense
Miscellaneous expense
Total Expenses
Net income		$

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

The Gorman Group Statement of Owner's Equity For the Year Ended October 31, 2019
Nicole Gorman, capital, November 1, 2018		$
Net income for the year	$
Withdrawals
Increase in owner's equity
Nicole Gorman, capital, October 31, 2019		$

Prepare a balance sheet.

The Gorman Group Balance Sheet October 31, 2019
Assets				Liabilities
Current assets:				Current liabilities:
Cash		$		Accounts payable	$
Accounts receivable				Salaries payable
Supplies				Unearned rent
Prepaid insurance				Total liabilities		$
Total current assets			$
Property, plant and equipment				Owner's Equity
Land		$		Nicole Gorman, capital
Buildings	$
Less accumulated depreciation
Equipment	$
Less accumulated depreciation
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.