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 $16,880 Accounts Receivable 36,740 Supplies 5,740 Prepaid Insurance 12,400 Land 130,000 Buildings 470,000 Accumulated Depreciation-Buildings 152,900 Equipment 339,000 Accumulated Depreciation-Equipment 199,200 Accounts Payable 43,450 Salaries Payable 4,310 Unearned Rent 1,950 Common Stock 195,000 Retained Earnings 362,400 Dividends 32,600 Service Fees 619,630 Rent Revenue 6,540 Salaries Expense 444,220 Depreciation Expense-Equipment 24,100 Rent Expense 20,200 Supplies Expense 14,290 Utilities Expense 12,920 Depreciation Expense-Buildings 8,610 Repairs Expense 7,120 Insurance Expense 3,900 Miscellaneous Expense 6,660 1,585,380 1,585,380

Required: 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?

Answer rating: 100% (QA)

Solution He re are the requested financial statements and journal entries 1 Income Statement The Gorman Group Income Statement For the Year Ended October 31 2018 Revenue Service Fees 619630 Rent Reven... View the full answer