The Gorman Group is a financial planning services firm owned and operated by Nicole Gorman. As of October 31, 2014, the end of the current fiscal year, the accountant for The Gorman Group prepared an end-of-period spreadsheet (work sheet), part of which is shown below.

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 netloss?

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The Gorman Group End-of-Period Spreadsheet For the Year Ended October 31, 2014 Adjusted Trial Balance Account Title Dr. Cr. Cash Accounts Receivable Supplies Prepaid Insurance Land Buildings Accumulated Depreciation-Buildings Equipment Accumulated Depreciation Equipment Accounts Payable Salaries Payable Uneamed Rent Capital Stock Retained Earnings Dividends Service Fees Rent Revenue Salaries Expense Depreciation Expense Equipment Rent Expense Supplies Expense Utilities Expense Depreciation Exn Buidings Repairs Expense Insurance Expense Miscellaneous Expense 11,000 28,150 6,350 9,500 75,000 250,000 117 200 240,000 151,700 33300 3300 1500 25000 195,000 20,000 468,000 5,000 291,000 17,500 15,500 9,000 8,500 6,600 3,450 3,000 5,450 1000,000 1000000