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:

Instructions
1.    Prepare an income statement, a retained earnings statement, and a balance sheet.
2.    Journalize the entries that were required to close the accounts at October 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?