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: Cr. The Gorman Group End-of-Period Spreadsheet For the Year Ended October 31, 2018 Adjusted Trial Balance Account Title Dr. Cash $14,820 Accounts Receivable 32,260 Supplies 5,040 Prepaid Insurance 10,890 Land 115,000 Buildings 412,000 Accumulated Depreciation-Buildings 134,300 Equipment 298,000 Accumulated Depreciation Equipment 174,900 Accounts Payable 38,150 Salaries Payable 3,780 Unearned Rent 1,710 Common Stock 171,000 Retained Earnings 318,880 Dividends 28,600 Service Fees 544.070 5,750 Rent Revenue Salaries Expense Depreciation Expense-Equipment Rent Expense Supplies Expense Utilities Expense Depreciation Expense-Buildings Repairs Expense Insurance Expense Miscellaneous Expense 390,050 21,200 17,700 12,550 11,340 7,560 6,250 3,430 5,850 1,392,540 1,392,540 Required: 1. Prepare an income statement. The Gorman Group Income Statement For the Year Ended October 31, 2018 Revenues: Total Revenues 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. The Gorman Group Balance Sheet October 31, 2018 Assets Liabilities Current assets: Current liabilities: Total liabilities Total current assets Property, plant, and equipment: Stockholders' Equity Total property, plant, and equipment Total stockholders' equity Total assets Total Habilities and 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 Account Debit Credit Oct. 31 Close revenues Oct. 31 Close expenses Oct. 31 Close innmelinee Oct. 31 Close income/loss Oct. 31 Close dividends 3. If Retained Earnings had instead decreased $40,100 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