The Gorman Group End-of-Period Spreadsheet
For the Year Ended October 31, 2019
Adjusted Trial Balance Account Title Dr. Cr.
Cash $18,230
Accounts Receivable 39,680
Supplies 6,200
Prepaid Insurance 13,390
Land 141,000
Buildings 507,000
Accumulated Depreciation-Buildings 165,200
Equipment 366,000
Accumulated Depreciation-Equipment 215,100
Accounts Payable 46,930
Salaries Payable 4,650
Unearned Rent 2,110
Nicole Gorman, Capital 601,760
Nicole Gorman, Drawing 35,200
Service Fees 669,290
Rent Revenue 7,070
Salaries Expense 479,820
Depreciation Expense - Equipment 26,000
Rent Expense 21,800
Supplies Expense 15,440
Utilities Expense 13,950
Depreciation Expense - Buildings 9,300
Repairs Expense 7,690
Insurance Expense 4,220
Miscellaneous Expense 7,190
1,712,110 1,712,110
Required:
1. a. Prepare an income statement.
b. Prepare a statement of owner's equity (no additional investments were made during the year.)
c. Prepare a balance sheet.
2. Journalize the entries that were required to close the accounts at October 31.
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?