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	11,910
Accounts Receivable	25,920
Supplies	4,050
Prepaid Insurance	8,750
Land	92,000
Buildings	331,000
Accumulated Depreciation-Buildings		107,900
Equipment	239,000
Accumulated Depreciation-Equipment		140,500
Accounts Payable		30,660
Salaries Payable		3,040
Unearned Rent		1,380
Common Stock		137,000
Retained Earnings		255,800
Dividends	23,000
Service Fees		437,200
Rent Revenue		4,620
Salaries Expense	313,430
Depreciation Expense-Equipment	17,000
Rent Expense	14,300
Supplies Expense	10,080
Utilities Expense	9,110
Depreciation Expense-Buildings	6,080
Repairs Expense	5,020
Insurance Expense	2,750
Miscellaneous Expense	4,700
Total	1,118,100	1,118,100

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