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	$15,580
Accounts Receivable	33,920
Supplies	5,300
Prepaid Insurance	11,450
Land	120,000
Buildings	434,000
Accumulated Depreciation-Buildings		141,200
Equipment	313,000
Accumulated Depreciation-Equipment		183,900
Accounts Payable		40,120
Salaries Payable		3,980
Unearned Rent		1,800
Common Stock		180,000
Retained Earnings		334,740
Dividends	30,100
Service Fees		572,140
Rent Revenue		6,040
Salaries Expense	410,170
Depreciation Expense-Equipment	22,300
Rent Expense	18,700
Supplies Expense	13,200
Utilities Expense	11,930
Depreciation Expense-Buildings	7,950
Repairs Expense	6,570
Insurance Expense	3,600
Miscellaneous Expense	6,150
	1,463,920	1,463,920

. Prepare an income statement.

Prepare a statement of owner's equity (no additional investments were made during the year.)

Prepare a balance sheet.

2. Journalize the entries that were required to close the accounts at October 31. For a compound transaction, if an amount box does not require an entry, leave it blank.

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?

Pure 21, 2018 ANG TE LETO

Answer 1

The GORMAN GROUP Income statement For the year ended October 31 2019. $ Revenues : Service fees 570140 G040 Dent revenue Total revenues (A) 578180 expenses Salaries Expeno Deprecation Exponse-&quement Rent expense Supplies expense Utildes expense Deprecators Building Repairs expense Insurance expense Miscellanears Couperne Potal expenses (B) Net in como (A-B) 410,170 22,300 18700 1 3000 11930 7950 G570 3600 6150 500570 4885420 849477610 CS Scanned with CamScanner

7761 THE Copman GROUP Statement of Owners equity For year ended october 31, 209 $3341740 Nicde Goman Capstad Novi 2013 Not income for the year $89540 Less: Withdrawds ($ 30100 47510 Increase ons Owners Aquity $544 Nicole Gorman, Captal od 312019 $29480 $3.82250 dividend on Wthdrawn, * Assuming CS Scanned with CamScanner

Het 45900 Gorica Babnice sheet Oct 31, 2019 $ heabelites, Currentaseeds: Burant leabelets: Cash 415580 | Account payable 40120 | Accounts receivable 33920 Salarios paipble 3980 Supplies 5300 hearmodront 1800 Prepard insurance 11450 Total Wabalho Bal Current 66250 exels Property, plant & Aquipment hand ||20000 Building 434000 Leys: depriate C141000292800 Biquipmont 313000 hen : deprecies (18390) 199100 Gastronie 541900 Rolal liability Total arels, 608,150 Oures equity Nicole Gorman Capeted kommon stock 382252 $944100 120000 dll scanned with CamScanner Total PPE ty Clonces equity 608150

clong enthes d. 2019 Oct 31. Sovice fees Revit Revenue $ 592140 6040 Branimo 578190 In como Summary Salaries expeno 31. Sarcome . Summary 500570 410,170 Dopreciados espere -Sopprel) 20300 ) Rest expont 18700 Supplies Expense. 13200 Carletres losporne 11930 Deprecation - Buildings 7956 Repaus expense Insurance expone Miscellaneous expense 31. Income Summary Nicole Gormeo, Capital 382aso Nicole gomas, Capetzl 30100 Nicode Coman drawing 3. #412350(+338aso +30100) met naamo. The $382250 mereare is caused loy the mot mome of $412350 les the $30100 of dividend. CS Scanned with CamScanner 6570 3600 GISD 38 aast 91 30100