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	12,290
Accounts Receivable	26,750
Supplies	4,180
Prepaid Insurance	9,030
Land	95,000
Buildings	342,000
Accumulated Depreciation-Buildings		111,400
Equipment	247,000
Accumulated Depreciation-Equipment		145,000
Accounts Payable		31,640
Salaries Payable		3,140
Unearned Rent		1,420
Nicole Gorman, Capital		406,100
Nicole Gorman, Drawing	23,700
Service Fees		451,230
Rent Revenue		4,770
Salaries Expense	323,490
Depreciation ExpenseEquipment	17,600
Rent Expense	14,700
Supplies Expense	10,410
Utilities Expense	9,410
Depreciation ExpenseBuildings	6,270
Repairs Expense	5,180
Insurance Expense	2,840
Miscellaneous Expense	4,850
	1,154,700	1,154,700

Required:

1. Prepare an income statement.

Gorman Group Income Statement For the Year Ended October 31, 20Y3
Revenues:
Insurance expenseMiscellaneous expenseNicole Gorman, capitalService feesSupplies expenseInsurance expense	$fill in the blank 2
Rent expenseRent revenueRepairs expenseUtilities expenseUnearned rentRent expense	fill in the blank 4
Total revenues		$fill in the blank 5
Expenses:
BuildingsCashRent revenueSalaries expenseSalaries payableBuildings	$fill in the blank 7
Accumulated depreciation-equipmentDepreciation expense-equipmentEquipmentLandNicole Gorman, capitalAccumulated depreciation-equipment	fill in the blank 9
Accounts payableRent expenseRent revenueService feesUnearned rentAccounts payable	fill in the blank 11
Accounts receivableNicole Gorman, capitalRent revenueSuppliesSupplies expenseAccounts receivable	fill in the blank 13
Nicole Gorman, capitalRent revenueService feesUtilities expenseUnearned rentNicole Gorman, capital	fill in the blank 15
Accumulated depreciation-buildingsBuildingsDepreciation expense-buildingsEquipmentLandAccumulated depreciation-buildings	fill in the blank 17
Accounts payableNicole Gorman, capitalRent revenueRepairs expenseSalaries payableAccounts payable	fill in the blank 19
Accounts receivableCashInsurance expensePrepaid insuranceRent revenueAccounts receivable	fill in the blank 21
Accumulated depreciation-buildingsBuildingsMiscellaneous expenseService feesUnearned rentAccumulated depreciation-buildings	fill in the blank 23
Total expenses		fill in the blank 24
Net income		$fill in the blank 25

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, 20Y3
Increase in owner's equityNet income for the yearNicole Gorman, capital, November 1, 20Y2Nicole Gorman, capital, October 31, 20Y3WithdrawalsIncrease in owner's equity		$fill in the blank 27
Increase in owner's equityNet income for the yearNicole Gorman, capital, November 1, 20Y2Nicole Gorman, capital, October 31, 20Y3WithdrawalsIncrease in owner's equity	$fill in the blank 29
Increase in owner's equityNet income for the yearNicole Gorman, capital, November 1, 20Y2Nicole Gorman, capital, October 31, 20Y3WithdrawalsIncrease in owner's equity	fill in the blank 31
Increase in owner's equityNet income for the yearNicole Gorman, capital, November 1, 20Y2Nicole Gorman, capital, October 31, 20Y3WithdrawalsIncrease in owner's equity		fill in the blank 33
Increase in owner's equityNet income for the yearNicole Gorman, capital, November 1, 20Y2Nicole Gorman, capital, October 31, 20Y3WithdrawalsIncrease in owner's equity		$fill in the blank 35

Prepare a balance sheet.

Gorman Group Balance Sheet October 31, 20Y3
Assets				Liabilities
Current assets:				Current liabilities:
Accounts payableCashNicole Gorman, capitalSalaries payableUnearned rentAccounts payable		$fill in the blank 37		Accounts payableAccounts receivableBuildingsNicole Gorman, capitalPrepaid insuranceAccounts payable	$fill in the blank 39
Accounts payableAccounts receivableNicole Gorman, capitalSalaries payableUnearned rentAccounts payable		fill in the blank 41		Accounts receivableSalaries expenseSalaries payableRent revenueRepairs expenseAccounts receivable	fill in the blank 43
Nicole Gorman, capitalSalaries payableSuppliesSupplies expenseUtilities expenseNicole Gorman, capital		fill in the blank 45		Accounts receivableAccumulated depreciationPrepaid rentRent revenueUnearned rentAccounts receivable	fill in the blank 47
Accumulated depreciationInsurance expenseEquipmentPrepaid insuranceUnearned rentAccumulated depreciation		fill in the blank 49		Total liabilities		$fill in the blank 50
Total current assets			$fill in the blank 51
Property, plant, and equipment:				Owner's Equity
Accounts receivableCashService feesLandSuppliesAccounts receivable		$fill in the blank 53		CashNicole Gorman, capitalNicole Gorman, drawingService feesSuppliesCash		fill in the blank 55
Accounts payableAccumulated depreciation-buildingsBuildingsDepreciation expense-buildingsNicole Gorman, capitalAccounts payable	$fill in the blank 57
Less accounts payableLess accumulated depreciation-buildingsLess cashLess depreciation expense-buildingsLess Nicole Gorman, capitalLess accounts payable	fill in the blank 59	fill in the blank 60
Accounts payableEquipmentDepreciation expense-equipmentNicole Gorman, capitalUnearned rentAccounts payable	$fill in the blank 62
Less accounts payableLess accumulated depreciation-equipmentLess cashLess depreciation expense-equipmentLess prepaid insuranceLess accounts payable	fill in the blank 64	fill in the blank 65
Total property, plant, and equipment			fill in the blank 66
Total assets			$fill in the blank 67	Total liabilities and owner's equity		$fill in the blank 68

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
Oct. 31	Nicole Gorman, DrawingNicole Gorman, CapitalMiscellaneous ExpenseService FeesUtilities ExpenseNicole Gorman, Drawing	fill in the blank 70	fill in the blank 71
	CashInsurance ExpenseNicole Gorman, CapitalPrepaid InsuranceRent RevenueCash	fill in the blank 73	fill in the blank 74
	Accounts ReceivableNicole Gorman, DrawingNicole Gorman, CapitalSalaries ExpenseUnearned RentAccounts Receivable	fill in the blank 76	fill in the blank 77
	Accounts ReceivableDepreciation ExpenseEquipmentNicole Gorman, DrawingNicole Gorman, CapitalSalaries PayableAccounts Receivable	fill in the blank 79	fill in the blank 80
	Accumulated Depreciation-EquipmentEquipmentNicole Gorman, CapitalNicole Gorman, DrawingRent ExpenseAccumulated Depreciation-Equipment	fill in the blank 82	fill in the blank 83
	EquipmentRent RevenueNicole Gorman, CapitalNicole Gorman, DrawingSupplies ExpenseEquipment	fill in the blank 85	fill in the blank 86
	EquipmentNicole Gorman, DrawingService FeesSuppliesUtilities ExpenseEquipment	fill in the blank 88	fill in the blank 89
	BuildingsDepreciation ExpenseBuildingsNicole Gorman, CapitalNicole Gorman, DrawingRent RevenueBuildings	fill in the blank 91	fill in the blank 92
	Accumulated Depreciation-EquipmentBuildingsEquipmentNicole Gorman, CapitalRepairs ExpenseAccumulated Depreciation-Equipment	fill in the blank 94	fill in the blank 95
	Accounts PayableInsurance ExpenseLandPrepaid InsuranceNicole Gorman, CapitalAccounts Payable	fill in the blank 97	fill in the blank 98
	Accounts ReceivableEquipmentMiscellaneous ExpenseNicole Gorman, CapitalPrepaid InsuranceAccounts Receivable	fill in the blank 100	fill in the blank 101
	CashEquipmentMiscellaneous ExpenseNicole Gorman, CapitalNicole Gorman, DrawingCash	fill in the blank 103	fill in the blank 104
Oct. 31	Accounts PayableEquipmentNicole Gorman, CapitalNicole Gorman, DrawingRent RevenueAccounts Payable	fill in the blank 106	fill in the blank 107
	CashEquipmentNicole Gorman, CapitalNicole Gorman, DrawingSupplies ExpenseCash	fill in the blank 109	fill in the blank 110

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? $fill in the blank 111

Net IncomeNet LossNet Income