Question
The Gorman Group is a financial planning services firm owned and operated by Nicole Gorman. As of October 31, 2018, the end of the fiscal
The Gorman Group is a financial planning services firm owned and operated by Nicole Gorman. As of October 31, 2018, 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, 2018 Adjusted Trial Balance Account Title Cash Dr. Cr. $11,850 Accounts Receivable 25,790 Supplies 4,030 Prepaid Insurance 8,700 Land 92,000 Buildings 330,000 Accumulated Depreciation-Buildings 107,400 Equipment 238,000 Accumulated Depreciation-Equipment 139,800 Accounts Payable 30,510 Salaries Payable 3,020 Unearned Rent Common Stock Retained Earnings Dividends 1,370 137,000 255,080 22,900 Service Fees 435,040 Rent Revenue 4,590 Salaries Expense 311,880 Salaries Expense 311,880 Depreciation Expense-Equipment 16,900 Rent Expense 14,200 Supplies Expense 10,030 Utilities Expense 9,070 Depreciation Expense-Buildings 6,050 Repairs Expense 5,000 Insurance Expense 2,740 Miscellaneous Expense 4,670 1,113,810 1,113,810 1. Prepare an income statement. Revenues: The Gorman Group Income Statement For the Year Ended October 31, 2018 Total Revenues Expenses: Total Expenses $ $ Total Expenses Net income Prepare a Retained Earnings Statement. The Gorman Group Retained Earnings Statement For the Year Ended October 31, 2018 $ Prepare a balance sheet. $ Prepare a balance sheet. Assets Current assets: The Gorman Group Balance Sheet October 31, 2018 Liabilities Current liabilities: Total current assets Property, plant, and equipment: $ $ $ Total property, plant, and equipment $ Total liabilities Stockholders' Equity dropdown Total stockholders' equity $ $ $ 2. Journalize the entries that were required to close the accounts at October 31. For a compound transaction, if a box does not require an entry, leave it blank. Date 2018 Oct. 31 Close revenues Oct. 31 Close expenses Account Debit Credit Oct. 31 Close income/loss Oct. 31 Close dividends 3. If Retained Earnings had instead decreased $32,000 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
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