Question

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 $15,460 Accounts Receivable 33,660 Supplies 5,260 Prepaid Insurance 11,360 Land 120,000 Buildings 430,000 Accumulated Depreciation-Buildings 140,100 Equipment 311,000 Accumulated Depreciation-Equipment 182,500 Accounts Payable 39,820 Salaries Payable 3,950 Unearned Rent 1,790 Common Stock 179,000 Retained Earnings 332,360 Dividends 29,900 Service Fees 567,820 Rent Revenue 6,000 Salaries Expense 407,070 Depreciation Expense-Equipment 22,100 Rent Expense 18,500 Supplies Expense 13,100 Utilities Expense 11,840 Depreciation Expense-Buildings 7,890 Repairs Expense 6,520 Insurance Expense 3,580 Miscellaneous Expense 6,100 1,453,340 1,453,340 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 liabilities and stockholders' equity

Answer 1

	Given Data
	Cash	$        15,460.00	Accumulated Depreciation -Building	$      140,100.00
	Accounts Receivable	$        33,660.00	Service Fees	$      567,820.00
	Supplies	$          5,260.00	Accumulated Depreciation -Equipment	$      182,500.00
	Prepaid Insurance	$        11,360.00	Accounts Payable	$        39,820.00
	Land	$      120,000.00	Salary Payable	$          3,950.00
	Building	$      430,000.00	Unearned Rent	$          1,790.00
	Dividend	$        29,900.00	Common Stock	$      179,000.00
	Salary Expenses	$      407,070.00	Retained Earnings	$      332,360.00
	Depreciation Expenses -Equipment	$        22,100.00	Rent Revenue	$          6,000.00
	Rent Expenses	$        18,500.00
	Insurance Expenses	$          3,580.00
	Equipment	$      311,000.00
	Supplies Expenses	$        13,100.00
	Utilities Expenses	$        11,840.00
	Depreciation Expense-Building	$          7,890.00
	Repair Expenses	$          6,520.00
	Miscellaneous Expenses	$          6,100.00
	Total	$ 1,453,340.00	Total	$ 1,453,340.00
a)	The GORMAN GROUP
	INCOME STATEMENT
	FOR THE MONTH OF October 31st,2018
	Revenue
	Service Fees	$      567,820.00
	Rent Revenue	$          6,000.00
	Expenses
	Supplies Expenses	$        13,100.00
	Rent Exepnses	$        18,500.00
	Salary Expenses	$      407,070.00
	Utilities Expenses	$        11,840.00
	Insurance Expenses	$          3,580.00
	Repair Expenses	$          6,520.00
	Miscellaneous Expenses	$          6,100.00
	Depreciation Expense-Building	$          7,890.00
	Depreciation Expenses -Equipment	$        22,100.00
	Total Expenses	$      496,700.00
	Net Income	$        77,120.00
	The GORMAN GROUP
	RETAINED EARNINGS STATEMENT
	FOR THE MONTH OF October 31st,2018
	Opening retained Earnings	$      332,360.00
	Net Income	$        77,120.00
	Less : Dividend Paid	$        29,900.00
	Retained Earnings on October 31st	$      379,580.00
	The GORMAN GROUP
	BALANCE SHEET
	AT Cotober 31st,2018
	ASSETS
	Cash	$        15,460.00
	Accounts Receivable	$        33,660.00
	Supplies	$          5,260.00
	Prepaid Insurance	$        11,360.00
	Land	$      120,000.00
	Equipment	$      311,000.00
	Building	$      430,000.00
	Total Assets	$      926,740.00
	LIABILITIES & STOCK HOLDER's EQUITY
	Liabilities
	Accounts Payable	$        39,820.00
	Salary Payable	$          3,950.00
	Unearned Rent	$          1,790.00
	Accumulated Depreciation-Building	$      140,100.00
	Accumulated Depreciation-Equipment	$      182,500.00
	Total Liabilities	$      368,160.00
	Shareholder's Equity
	Common Stock	$      179,000.00
	Reatined Earnings	$      379,580.00
	Total Shareholder's Equity	$      558,580.00
	Total Liabilities & Stockholder's Equity	$      926,740.00