Question
Question Content Area Financial Statements and Closing Entries The Gorman Group is a financial planning services firm owned and operated by Nicole Gorman. As of
Question Content Area
Financial Statements and Closing Entries
The Gorman Group is a financial planning services firm owned and operated by Nicole Gorman. As of October 31, 20Y9, the end of the fiscal year, the accountant for The Gorman Group prepared an end-of-period spreadsheet, part of which follows:
Account Title | Adjusted Trial Balance Dr. | Adjusted Trial Balance Cr. |
---|---|---|
Cash | 18,490 | |
Accounts Receivable | 40,260 | |
Supplies | 6,290 | |
Prepaid Insurance | 13,590 | |
Land | 143,000 | |
Buildings | 515,000 | |
Accumulated Depreciation-Buildings | 167,600 | |
Equipment | 372,000 | |
Accumulated Depreciation-Equipment | 218,300 | |
Accounts Payable | 47,620 | |
Salaries Payable | 4,720 | |
Unearned Rent | 2,140 | |
Common Stock | 214,000 | |
Retained Earnings | 397,680 | |
Dividends | 35,700 | |
Service Fees | 679,010 | |
Rent Revenue | 7,170 | |
Salaries Expense | 486,780 | |
Depreciation Expense-Equipment | 26,400 | |
Rent Expense | 22,100 | |
Supplies Expense | 15,660 | |
Utilities Expense | 14,150 | |
Depreciation Expense-Buildings | 9,440 | |
Repairs Expense | 7,800 | |
Insurance Expense | 4,280 | |
Miscellaneous Expense | 7,300 | |
Total | 1,738,240 | 1,738,240 |
Required:
1. Prepare an income statement.
Line Item Description | Amount | Amount |
---|---|---|
Revenues: | ||
Common stockInsurance expenseMiscellaneous expenseService feesSupplies expense | $fill in the blank 2 | |
Rent expenseRent revenueRepairs expenseUnearned rentUtilities expense | fill in the blank 4 | |
Total revenues | $fill in the blank 5 | |
Expenses: | ||
BuildingsCashRent revenueSalaries expenseSalaries payable | $fill in the blank 7 | |
Accumulated depreciation-equipmentCommon stockDepreciation expense-equipmentEquipmentLand | fill in the blank 9 | |
Accounts payableRent expenseRent revenueService feesUnearned rent | fill in the blank 11 | |
Accounts receivableCommon stockRent revenueSuppliesSupplies expense | fill in the blank 13 | |
Common stockRent revenueService feesUnearned rentUtilities expense | fill in the blank 15 | |
Accumulated depreciation-buildingsBuildingsDepreciation expense-buildingsEquipmentLand | fill in the blank 17 | |
Accounts payableCommon stockRent revenueRepairs expenseSalaries payable | fill in the blank 19 | |
Accounts receivableCashInsurance expensePrepaid insuranceRent revenue | fill in the blank 21 | |
Accumulated depreciation-buildingsBuildingsMiscellaneous expenseService feesUnearned rent | fill in the blank 23 | |
Total expenses | fill in the blank 24 | |
Net incomeNet loss | $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.
Line Item Description | Common Stock | Retained Earnings | Total |
---|---|---|---|
Balances, November 1, 20Y8Balances, October 31, 20Y9DividendsNet incomeNet loss | $fill in the blank 28 | $fill in the blank 29 | $fill in the blank 30 |
Balances, November 1, 20Y8Balances, October 31, 20Y9Change in retained earningsNet incomeNet loss | fill in the blank 32 | fill in the blank 33 | fill in the blank 34 |
Balances, November 1, 20Y8Balances, October 31, 20Y9DividendsNet incomeNet loss | fill in the blank 36 | fill in the blank 37 | fill in the blank 38 |
Balances, November 1, 20Y8Balances, October 31, 20Y9DividendsNet incomeNet loss | $fill in the blank 40 | $fill in the blank 41 | $fill in the blank 42 |
Prepare a balance sheet.
Assets | |||
---|---|---|---|
Current assets: | |||
Accounts payableCashCommon stockSalaries payableUnearned rent | $fill in the blank 44 | ||
Accounts payableAccounts receivableCommon stockSalaries payableUnearned rent | fill in the blank 46 | ||
Common stockSalaries payableSuppliesSupplies expenseUtilities expense | fill in the blank 48 | ||
Accumulated depreciation-buildingsEquipmentInsurance expensePrepaid insuranceUnearned rent | fill in the blank 50 | ||
Total current assets | $fill in the blank 51 | ||
Property, plant, and equipment: | |||
Accounts receivableCashLandService feesSupplies | $fill in the blank 53 | ||
Accounts payableAccumulated depreciation-buildingsBuildingsCommon stockDepreciation expense-buildings | $fill in the blank 55 | ||
Accounts payableAccumulated depreciation-buildingsCashCommon stockDepreciation expense | fill in the blank 57 | ||
Accounts payableBook value-buildingsCashCommon stockDepreciation expense | fill in the blank 59 | ||
Accounts payableCommon stockDepreciation expense-equipmentEquipmentUnearned rent | $fill in the blank 61 | ||
Accounts payableAccumulated depreciation-equipmentCashDepreciation expensePrepaid insurance | fill in the blank 63 | ||
Accounts payableBook value-equipmentCashDepreciation expensePrepaid insurance | fill in the blank 65 | ||
Total property, plant, and equipment | fill in the blank 66 | ||
Total assets | $fill in the blank 67 | ||
Liabilities | |||
Current liabilities: | |||
Accounts payableAccounts receivableBuildingsCommon stockPrepaid insurance | $fill in the blank 69 | ||
Accounts receivableRent revenueRepairs expenseSalaries expenseSalaries payable | fill in the blank 71 | ||
Accounts receivableAccumulated depreciation-buildingsPrepaid rentRent revenueUnearned rent | fill in the blank 73 | ||
Total liabilities | $fill in the blank 74 | ||
Stockholders' Equity | |||
CashCommon stockLandService feesSupplies | $fill in the blank 76 | ||
CashLandRetained earningsService feesSupplies | fill in the blank 78 | ||
Total stockholders' equity | 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 |
---|---|---|---|
20Y9 Oct. 31 | Insurance expenseMiscellaneous expenseRetained earningsService feesUtilities expense | fill in the blank 82 | fill in the blank 83 |
CashInsurance expensePrepaid insuranceRent revenueRepairs expense | fill in the blank 85 | fill in the blank 86 | |
Accounts receivableCashDividendsSalaries expenseSalaries payable | fill in the blank 88 | fill in the blank 89 | |
Accumulated depreciation-equipmentDepreciation expense-equipmentEquipmentLandService fees | fill in the blank 91 | fill in the blank 92 | |
Accounts receivableRent expenseRent revenueRetained earningsUnearned rent | fill in the blank 94 | fill in the blank 95 | |
CashDividendsService feesSuppliesSupplies expense | fill in the blank 97 | fill in the blank 98 | |
BuildingsDividendsRent revenueRetained earningsUtilities expense | fill in the blank 100 | fill in the blank 101 | |
Accounts receivableAccumulated depreciation-equipmentBuildingsDepreciation expense-buildingsLand | fill in the blank 103 | fill in the blank 104 | |
Accounts payableEquipmentLandPrepaid insuranceRepairs expense | fill in the blank 106 | fill in the blank 107 | |
Accounts receivableCashInsurance expensePrepaid insuranceRetained earnings | fill in the blank 109 | fill in the blank 110 | |
Accounts receivableCashEquipmentMiscellaneous expenseSalaries payable | fill in the blank 112 | fill in the blank 113 | |
CashRetained earningsService feesUnearned rentWages Payable | fill in the blank 115 | fill in the blank 116 | |
20Y9 Oct. 31 | Accounts payableDividendsRent revenueRetained earningsService fees | fill in the blank 118 | fill in the blank 119 |
Accounts receivableCashDividendsRetained earningsSupplies expense | fill in the blank 121 | fill in the blank 122 |
3. If the balance of Retained earnings had instead increased $50,000 after the closing entries were posted, and the dividends remained the same, what would have been the amount of Net income or Net loss? Enter all amounts as positive numbers. fill in the blank 1 of 2$ fill in the blank 2 of 2
Net IncomeNet Loss
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started