The Gorman Group Retained Earnings Statement For the Year Ended October 31, 2018 Retained earnings, November 1, 2017 Net Income 69,470 Dividends 26,900 Change in retained earnings 42,570 Retained earnings, October 31, 2018 S Prepare a balance sheet. The Gorman Group Balance Sheet October 31, 2018 Assets Current assets: Cash Liabilities Current liabilities: Accounts payable v s $ 13,940 35,880 Accounts receivable 30,340 Salaries payable 3,560 Supplies 4,740 Unearned rent 1,610 Prepaid insurance 10,240 Total liabilities $ 41,050 59,260 Total current assets Property, plant, and equipment: Land Stockholders' Equity Common stock $ 108,000 $ 161,000 Buildings 388,000 Retained earnings Accumulated depreciation-buildings 126,300 Book value-buildings 261,700 Equipment 280,000 164,500 Accumulated depreciation-equipment Book value-equipment 115,500 Total property, plant, and equipment 1,228,00 X Total stockholders' equity 59,260 x Total liabilities and stockholders' equity Total assets $ S Financial Statements and Closing Entries 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 Dr. Cr. Cash $13,940 Accounts Receivable 30,340 Supplies 4,740 Prepaid Insurance 10,240 Land 108,000 Buildings 388,000 Accumulated Depreciation- 126,300 Buildings Equipment 280,000 Accumulated Depreciation- 164,500 Equipment Accounts Payable 35,880 Salaries Payable 3,560 Uncarned Rent 1,610 Common Stock 161,000 Retained Earrings 299,340 Dividends 26,900 Service Fees 511,680 Rent Revenue 5,400 Salaries Expense 366,830 Depreciation Expanse 19,900 Equipment Rent Expense 16,700 Supplies Expense 11.800 Utilities Expense 10,670 Depreciation Expense-Buildings 7,110 Repairs Expense 5,880 Insurance Expense 3,220 Miscellaneous Expense 5,500 1,309,770 1,309,770 09.770