The Gorman Group is a financial planning services firm owned and operated by Nicole Gorman. As of October 31, 2019, 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, 2019
	Adjusted Trial Balance
Account Title	Dr.	Cr.
Cash	$11,670
Accounts Receivable	25,410
Supplies	3,970
Prepaid Insurance	8,580
Land	90,000
Buildings	325,000
Accumulated Depreciation-Buildings		105,800
Equipment	235,000
Accumulated Depreciation-Equipment		137,800
Accounts Payable		30,050
Salaries Payable		2,980
Unearned Rent		1,350
Nicole Gorman, Capital		386,010
Nicole Gorman, Drawing	22,500
Service Fees		428,560
Rent Revenue		4,530
Salaries Expense	307,240
Depreciation ExpenseEquipment	16,700
Rent Expense	14,000
Supplies Expense	9,890
Utilities Expense	8,930
Depreciation ExpenseBuildings	5,960
Repairs Expense	4,920
Insurance Expense	2,700
Miscellaneous Expense	4,610
	1,097,080	1,097,080

Required:

1. Prepare an income statement.

Prepare a statement of owner's equity (no additional investments were made during the year.)

Prepare a balance sheet.

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.

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?