The Gorman Group End-of-Period Spreadsheet For the Year Ended October 31, 2019 Adjusted Trial Balance Dr. Cr. Account Title Cash 14,410 Accounts Receivable 31,360 Supplies Prepaid Insurance 4,900 10,580 111,000 Land 401,000 130,500 290,000 170,000 Buildings Accumulated Depreciation-Buildings Equipment Accumulated Depreciation Equipment Accounts Payable Salaries Payable Unearned Rent Nicole Gorman, Capital 37,090 3,680 1,670 476,240 3,DOU 1,670 476,240 27,800 528,960 5,590 379,210 Unearned Rent Nicole Gorman, Capital Nicole Gorman, Drawing Service Fees Rent Revenue Salaries Expense Depreciation Expense-Equipment Rent Expense Supplies Expense Utilities Expense Depreciation Expense--Buildings Repairs Expense Insurance Expense Miscellaneous Expense 20,600 17,200 12,200 11,030 7,350 6,080 3,330 5,680 1,353,730 1,353,730 Required: 1. Prepare an income statement. 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 Nicole Gorman, capital, November 1, 2018 476,240 Net income for the year 71,870 Withdrawals 27,800 Increase in owner's equity v Nicole Gorman, capital, October 31, 2019 7 $ Prepare a balance sheet. Current assets: Current liabilities: Cash Accounts payable 14,410 Accounts receivable Supplies 31,360 Salaries payable 4,900 Unearned rent Prepaid insurance 10,580 Total liabilities Total current assets 61,250 Property, plant, and equipment: Owner's Equity Land Nicole Gorman, capital 111,000 Buildings 401,000 Less accumulated depreciation-buildings 130,500 Liabilities Current liabilities: Accounts payable 37,090 Salaries payable 3,680 Unearned rent 1,670 Total liabilities 42,440 61,250 Owner's Equity Nicole Gorman, capital Gorman Grup Balance Sheet October 31.10 Liabilities Current assets Current abilities: Accounts payable 14,410 37,090 31,360 Accounts receivable Supplies Salaries payable 3,680 4,900 Uncarnadet 1,670 Prepaid insurance 10,580 Total liabilities 42,440 Total current assets 61,250 61,250 Property, plant, and equipment: Owner's Equity Land Nicole Gorman, capital 111,000 Total current assets 61,250 Property, plant, and equipment: Owner's Equity Land Nicole Gorman, capital 111,000 muildings 401,000 130,500 Less accumulated depreciation buildings Equipment 290,000 170,000 Luss accumulated depreciation-equipment Total property, plant, and equipment Total liabilities and owner's equity Total assets 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 Account Debit Credit Oct. 31 Service Fees 528,960 Rent Revenue 5,590 Salaries Expense Depreciation Expense-Equipment Rent Expense 379,210 20,600 17,200 Supplies Expense Utilities Expense 12,200 Depreciation Expense-Buildings 11,030 Repairs Expense 7,350 Insurance Expense 6,080 Miscellaneous Expense 3,330 Nicole Gorman, Capital 5,680 Oct. 31 Nicole Gorman, Capital 7,350 Depreciation Expense-Buildings Repairs Expense Insurance Expense 6,080 3,330 5,680 Miscellaneous Expense Nicole Gorman, Capital Oct. 31 Nicole Gatman, Capital Nicole Gorman, Drawing 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 be amount of net income or not loss? Net Income