The Gorman Group is a financial planning services firm owned and operated by Nicole Gorman. As of October 31, 20Y9, 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, 20Y9 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 Common Stock 25,000 Retained Earnings 195,000 Dividends 20,000 Service Fees 468,000 Rent Revenue 5,000 Salaries Expense 291,000 Depreciation Expense-Equipment 17,500 Rent Expense 15,500 Supplies Expense 9,000 Utilities Expense 8,500 Depreciation Expense-Buildings 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, 20Y9 Revenues: $ Total revenues $ Expenses: $ Total expenses $ Prepare a statement of stockholders’ equity. During the year, no additional common stock was issued. If an amount box does not require an entry, leave it blank. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. The Gorman Group Statement of Stockholders’ Equity For the Year Ended October 31, 20Y9 Common Stock Retained Earnings Total $ $ $ $ $ $ Prepare a balance sheet. The Gorman Group Balance Sheet October 31, 20Y9 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 liabilities and stockholders' equity $ 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 20Y9 Oct. 31 20Y9 Oct. 31 3. If the balance of Retained Earnings had instead increased $115,000 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 the amount as positive number. $

Question

The Gorman Group is a financial planning services firm owned and operated by Nicole Gorman. As of October 31, 20Y9, 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, 20Y9
	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
Common Stock		25,000
Retained Earnings		195,000
Dividends	20,000
Service Fees		468,000
Rent Revenue		5,000
Salaries Expense	291,000
Depreciation Expense-Equipment	17,500
Rent Expense	15,500
Supplies Expense	9,000
Utilities Expense	8,500
Depreciation Expense-Buildings	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, 20Y9
Revenues:
	$

Total revenues		$
Expenses:
	$








Total expenses
		$

Prepare a statement of stockholders’ equity. During the year, no additional common stock was issued. If an amount box does not require an entry, leave it blank. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign.


Common Stock	Retained Earnings	Total
$	$	$


$	$	$

Prepare a balance sheet.

The Gorman Group Balance Sheet October 31, 20Y9
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 liabilities and stockholders' equity	$

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
20Y9 Oct. 31












20Y9 Oct. 31

3. If the balance of Retained Earnings had instead increased $115,000 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 the amount as positive number.
$