Question

1. 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	$16,140
   Accounts Receivable	35,140
   Supplies	5,490
   Prepaid Insurance	11,860
   Land	125,000
   Buildings	449,000
   Accumulated Depreciation-Buildings		146,300
   Equipment	324,000
   Accumulated Depreciation-Equipment		190,500
   Accounts Payable		41,560
   Salaries Payable		4,120
   Unearned Rent		1,870
   Common Stock		187,000
   Retained Earnings		346,010
   Dividends	31,200
   Service Fees		592,650
   Rent Revenue		6,260
   Salaries Expense	424,870
   Depreciation Expense-Equipment	23,100
   Rent Expense	19,300
   Supplies Expense	13,670
   Utilities Expense	12,350
   Depreciation Expense-Buildings	8,240
   Repairs Expense	6,810
   Insurance Expense	3,730
   Miscellaneous Expense	6,370
   	1,516,270	1,516,270

   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

   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	Account	Debit	Credit
   2018
   Oct. 31 Close revenues
   Oct. 31 Close expenses
   Oct. 31 Close income/loss
   Oct. 31 Close dividends

   3. If Retained Earnings had instead decreased $43,600 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.
   $  

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Answer 1