The Gorman Group is a financial planning services firm owned and operated by Nicole Gorman. As of October 31, 2016, the end of the fiscal year, the accountant for The Gorman Group prepared an end-of-period spreadsheet, part of which follows:

Instructions
1. Prepare an income statement, a statement of owner's equity (no additional investments were made during the year), and a balance sheet.
2. Journalize the entries that were required to close the accounts at October 31.
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?

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The Gorman Group End-of-Period Spreadsheet For the Year Ended October 31, 2016 Adjusted Trial Balance 6 Account Title 8 Cash 11,000 28,150 9 Accounts Receivable 10 Supplies 11 Prepaid Insurance 12 Land 13 Buildings 14 Accumulated Deprecation-Buildi 15 E 16 A㏄u mulated Depreciation-Equipment 17 Accounts 18 Salaries Pava ble 19 Uneamed Rent 20 Nicole Gorman, Capital 21 Nicole Gorman, Drawin 22 Service Fees 23 Rent Revenue 24 Salaries 25 Depreciation Expense-Equipment 26 Rent Expense 27 Supplies Expense 28 Utilities Expense 29 Depreciation Expense-Buildi 30 Repairs Expense 31 Insurance Expense 32 Miscellaneous Expense 9,500 75,000 250,000 240,000 151,700 33,300 3,300 1,500 220,000 20,000 468,000 5,000 291,000 17,500 15,500 9,000 8,500 6,600 3,450 3,000