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Financial Statements and Closing Entries 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 $12,170 Accounts Receivable 26,500 Supplies 4,140 Prepaid Insurance 8,940 Land 94,000 Buildings 339,000 Accumulated Depreciation-Buildings 110,300 Equipment 245,000 Accumulated Depreciation-Equipment 143,700 Accounts Payable 31,340 Salaries Payable 3,110 Unearned Rent 1,410 Common Stock 141,000 Retained Earnings 261,740 Dividends 23,500 Service Fees 446,910 Rent Revenue 4,720 Salaries Expense 320,390 Depreciation Expense-Equipment 17,400 Rent Expense 14,600 Supplies Expense 10,310 Utilities Expense 9,320 Depreciation Expense-Buildings 6,210 Repairs Expense 5,130 Insurance Expense 2,820 Miscellaneous Expense 4,800 1,144,230 1,144,230 Required: 1. Prepare an income statement. The Gorman Group Income Statement For the Year Ended October 31, 2018 Revenues: Service fees Rent revenue Total Revenues Expenses: Salaries expense Depreciation expense-equipment Rent expense Supplies expense Utilities expense Depreciation expense-buildings Repairs expense Insurance expense Miscellaneous expense Total Expenses Net income Retained Earnings Statement For the Year Ended October 31, 2018 Retained earnings, November 1, 2017 Net income Dividends Change in retained earnings Retained earnings, October 31, 2018 Prepare a balance sheet. The Gorman Group Balance Sheet October 31, 2018 Assets Liabilities Current assets: Current liabilities: Cash Accounts payable Accounts receivable Salaries payable Supplies Unearned rent Prepaid insurance Total liabilities Total current assets Property, plant, and equipment: Stockholders' Equity Land Common stock Buildings Retained earnings Accumulated depreciation-buildings Book value-buildings Equipment Accumulated depreciation-equipment Book value-equipment Total property, plant, and equipment Total stockholders' equity Total assets Total liabilities and stockholders' equity 2. Journalize the entries that were required to close the accounts at October 31. For a compound transaction, if a box does not require an entry, leave it blank. Date Account Debit Credit 2018 Oct. 31 Close Service Fees revenues Rent Revenue 11 III Income Summary - Oct. 31 Close expenses Income Summary Salaries Expense Depreciation Expense-Equipment Rent Expense Supplies Expense Utilities Expense Depreciation Expense-Buildings Repairs Expense Insurance Expense Miscellaneous Expense . Oct. 31 Close income/loss Income Summary Retained Earnings Oct. 31 Close Retained Earnings dividends Dividends 3. If Retained Earnings had instead decreased $32,900 after the closing entries were posted, and the dividends remained the same, what would have been the amount of net income or net loss? Enter all amounts as positive numbers. $ Net Loss

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