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	$17,700
Accounts Receivable	38,530
Supplies	6,020
Prepaid Insurance	13,000
Land	137,000
Buildings	493,000
Accumulated Depreciation-Buildings		160,400
Equipment	356,000
Accumulated Depreciation-Equipment		208,900
Accounts Payable		45,570
Salaries Payable		4,520
Unearned Rent		2,050
Common Stock		205,000
Retained Earnings		380,780
Dividends	34,200
Service Fees		649,860
Rent Revenue		6,860
Salaries Expense	465,890
Depreciation Expense-Equipment	25,300
Rent Expense	21,200
Supplies Expense	14,990
Utilities Expense	13,550
Depreciation Expense-Buildings	9,030
Repairs Expense	7,460
Insurance Expense	4,090
Miscellaneous Expense	6,980
	1,663,940	1,663,940

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
Balances, November 1, 20Y8	$	$	$
Net income
Dividends
Balances, October 31, 20Y9	$	$	$

Prepare a balance sheet.

The Gorman Group Balance Sheet October 31, 20Y9
Assets				Liabilities
Current assets:				Current liabilities:
Cash		$			$
Accounts receivable
Supplies
Prepaid insurance				Total liabilities		$
Total current assets			$
Property, plant, and equipment:				Stockholders' Equity
Land		$			$
Buildings	$
Accumulated depreciation-buildings
	$
Total property, plant, and equipment				Total stockholders' equity
Total assets			$	Total liabilities and stockholders' equity		$

Answer 1