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	11,000
Accounts Receivable	28,150
Supplies	6,350
Prepaid Insurance	9,500
Land	75,000
Buildings	250,000
Accumulated Depreciation-Buildings		117,200
Equipment	240,000
Accumulated Depreciation-Equipment		151,700
Accounts Payable		33,300
Salaries Payable		3,300
Unearned Rent		1,500
Nicole Gorman, Capital		220,000
Nicole Gorman, Drawing	20,000
Service Fees		468,000
Rent Revenue		5,000
Salaries Expense	291,000
Depreciation ExpenseEquipment	17,500
Rent Expense	15,500
Supplies Expense	9,000
Utilities Expense	8,500
Depreciation ExpenseBuildings	6,600
Repairs Expense	3,450
Insurance Expense	3,000
Miscellaneous Expense	5,450
	1,000,000	1,000,000

Required:

1. Prepare an income statement.

The Gorman Group Income Statement For the Year Ended October 31, 20Y3
Revenues:
Insurance expenseNicole Gorman, capitalMiscellaneous expenseService feesSupplies expense	$fill in the blank 2
Rent expenseRent revenueRepairs expenseUtilities expenseUnearned rent	fill in the blank 4
Total Revenues		$fill in the blank 5
Expenses:
BuildingsCashRent revenueSalaries expenseSalaries payable	$fill in the blank 7
Accumulated depreciation-equipmentDepreciation expense-equipmentEquipmentLandNicole Gorman, capital	fill in the blank 9
Accounts payableRent expenseRent revenueService feesUnearned rent	fill in the blank 11
Accounts receivableNicole Gorman, capitalRent revenueSuppliesSupplies expense	fill in the blank 13
Nicole Gorman, capitalRent revenueService feesUtilities expenseUnearned rent	fill in the blank 15
Accumulated depreciation-buildingsBuildingsDepreciation expense-buildingsEquipmentLand	fill in the blank 17
Accounts payableNicole Gorman, capitalRent revenueRepairs expenseSalaries payable	fill in the blank 19
Accounts receivableCashInsurance expensePrepaid insuranceRent revenue	fill in the blank 21
Accumulated depreciation-buildingsBuildingsMiscellaneous expenseService feesUnearned rent	fill in the blank 23
Total Expenses		fill in the blank 24
Net incomeNet loss		$fill in the blank 26

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

The Gorman Group Statement of Owner's Equity For the Year Ended October 31, 20Y3
Increase in owner's equityNicole Gorman, capital, November 1, 20Y2Nicole Gorman, capital, October 31, 20Y3WithdrawalsNet income for the year		$fill in the blank 28
Increase in owner's equityNicole Gorman, capital, November 1, 20Y2Nicole Gorman, capital, October 31, 20Y3WithdrawalsNet income for the year	$fill in the blank 30
Increase in owner's equityNicole Gorman, capital, November 1, 20Y2Nicole Gorman, capital, October 31, 20Y3WithdrawalsNet income for the year	fill in the blank 32
Increase in owner's equityNicole Gorman, capital, November 1, 20Y2Nicole Gorman, capital, October 31, 20Y3WithdrawalsNet income for the year		fill in the blank 34
Increase in owner's equityNicole Gorman, capital, November 1, 20Y2Nicole Gorman, capital, October 31, 20Y3WithdrawalsNet income for the year		$fill in the blank 36

Prepare a balance sheet.

The Gorman Group Balance Sheet October 31, 20Y3
Assets				Liabilities
Current assets:				Current liabilities:
Accounts payableCashNicole Gorman, capitalSalaries payableUnearned rent		$fill in the blank 38		Accounts payableAccounts receivableBuildingsNicole Gorman, capitalPrepaid insurance	$fill in the blank 40
Accounts payableAccounts receivableNicole Gorman, capitalSalaries payableUnearned rent		fill in the blank 42		Accounts receivableSalaries expenseSalaries payableRent revenueRepairs expense	fill in the blank 44
Nicole Gorman, capitalSalaries payableSuppliesSupplies expenseUtilities expense		fill in the blank 46		Accounts receivableAccumulated depreciationPrepaid rentRent revenueUnearned rent	fill in the blank 48
Accumulated depreciationInsurance expenseEquipmentPrepaid insuranceUnearned rent		fill in the blank 50		Total liabilities		$fill in the blank 51
Total current assets			$fill in the blank 52
Property, plant, and equipment:				Owner's Equity
Accounts receivableCashService feesLandSupplies		$fill in the blank 54		CashNicole Gorman, capitalNicole Gorman, drawingService feesSupplies		fill in the blank 56
Accounts payableAccumulated depreciation-buildingsBuildingsDepreciation expense-buildingsNicole Gorman, capital	$fill in the blank 58
Less accounts payableLess accumulated depreciation-buildingsLess cashLess depreciation expense-buildingsLess Nicole Gorman, capital	fill in the blank 60	fill in the blank 61
Accounts payableEquipmentDepreciation expense-equipmentNicole Gorman, capitalUnearned rent	$fill in the blank 63
Less accounts payableLess accumulated depreciation-equipmentLess cashLess depreciation expense-equipmentLess prepaid insurance	fill in the blank 65	fill in the blank 66
Total property, plant, and equipment			fill in the blank 67
Total assets			$fill in the blank 68	Total liabilities and owner's equity		$fill in the blank 69

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 Expense	fill in the blank 71	fill in the blank 72
	CashNicole Gorman, DrawingInsurance ExpensePrepaid InsuranceRent Revenue	fill in the blank 74	fill in the blank 75
	Accounts ReceivableNicole Gorman, CapitalNicole Gorman, DrawingSalaries ExpenseUnearned Rent	fill in the blank 77	fill in the blank 78
	Accounts ReceivableDepreciation ExpenseEquipmentNicole Gorman, CapitalNicole Gorman, DrawingSalaries Payable	fill in the blank 80	fill in the blank 81
	Accumulated Depreciation-EquipmentNicole Gorman, DrawingEquipmentAccounts ReceivableRent Expense	fill in the blank 83	fill in the blank 84
	Accounts ReceivableNicole Gorman, DrawingRent RevenueNicole Gorman, CapitalSupplies Expense	fill in the blank 86	fill in the blank 87
	Accounts ReceivableNicole Gorman, DrawingService FeesSuppliesUtilities Expense	fill in the blank 89	fill in the blank 90
	BuildingsDepreciation ExpenseBuildingsNicole Gorman, CapitalRent RevenueNicole Gorman, Drawing	fill in the blank 92	fill in the blank 93
	Accumulated Depreciation-EquipmentNicole Gorman, DrawingBuildingsAccounts ReceivableRepairs Expense	fill in the blank 95	fill in the blank 96
	Accounts PayableInsurance ExpenseLandPrepaid InsuranceNicole Gorman, Drawing	fill in the blank 98	fill in the blank 99
	Accounts ReceivableAccounts PayableMiscellaneous ExpenseNicole Gorman, CapitalPrepaid Insurance	fill in the blank 101	fill in the blank 102
	CashEquipmentAccounts PayableMiscellaneous ExpenseNicole Gorman, Capital	fill in the blank 104	fill in the blank 105
Oct. 31	Accounts PayableAccounts ReceivableNicole Gorman, CapitalNicole Gorman, DrawingRent Revenue	fill in the blank 107	fill in the blank 108
	CashAccounts ReceivableNicole Gorman, CapitalNicole Gorman, DrawingSupplies Expense	fill in the blank 110	fill in the blank 111

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 112

Net IncomeNet Loss