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 $13,350 Accounts Receivable 29,060 Supplies 4,540 Prepaid Insurance 9,810 Land 103,000 Buildings 371,000 Accumulated Depreciation-Buildings 120,900 Equipment 268,000 Accumulated Depreciation-Equipment 157,500 Accounts Payable 34,370 Salaries Payable 3,410 Unearned Rent 1,540 Common Stock 154,000 Retained Earnings 286,340 Dividends 25,800 Service Fees 490,090 Rent Revenue 5,180 Salaries Expense 351,350 Depreciation Expense-Equipment 19,100 Rent Expense 16,000 Supplies Expense 11,300 Utilities Expense 10,220 Depreciation Expense-Buildings 6,810 Repairs Expense 5,630 Insurance Expense 3,090 Miscellaneous Expense 5,270 1,253,330 1,253,330 Required: 1. Prepare an income statement. The Gorman Group Income Statement For the Year Ended October 31, 2018 Revenues: fill in the blank 2 fill in the blank 4 Total Revenues fill in the blank 5 Expenses: fill in the blank 7 fill in the blank 9 fill in the blank 11 fill in the blank 13 fill in the blank 15 fill in the blank 17 fill in the blank 19 fill in the blank 21 fill in the blank 23 Total Expenses fill in the blank 24 Net income fill in the blank 25 Prepare a Retained Earnings Statement. The Gorman Group Retained Earnings Statement For the Year Ended October 31, 2018 fill in the blank 27 fill in the blank 29 fill in the blank 31 fill in the blank 33 fill in the blank 35 Prepare a balance sheet. The Gorman Group Balance Sheet October 31, 2018 Assets Liabilities Current assets: Current liabilities: fill in the blank 37 fill in the blank 39 fill in the blank 41 fill in the blank 43 fill in the blank 45 fill in the blank 47 fill in the blank 49 Total liabilities fill in the blank 50 Total current assets fill in the blank 51 Property, plant, and equipment: Stockholders' Equity fill in the blank 53 fill in the blank 55 fill in the blank 57 fill in the blank 59 fill in the blank 61 fill in the blank 63 fill in the blank 65 fill in the blank 67 fill in the blank 69 Total property, plant, and equipment fill in the blank 70 Total stockholders' equity fill in the blank 71 Total assets fill in the blank 72 Total liabilities and stockholders' equity fill in the blank 73 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 revenues fill in the blank 75 fill in the blank 76 fill in the blank 78 fill in the blank 79 fill in the blank 81 fill in the blank 82 Oct. 31 Close expenses fill in the blank 84 fill in the blank 85 fill in the blank 87 fill in the blank 88 fill in the blank 90 fill in the blank 91 fill in the blank 93 fill in the blank 94 fill in the blank 96 fill in the blank 97 fill in the blank 99 fill in the blank 100 fill in the blank 102 fill in the blank 103 fill in the blank 105 fill in the blank 106 fill in the blank 108 fill in the blank 109 fill in the blank 111 fill in the blank 112 Oct. 31 Close income/loss fill in the blank 114 fill in the blank 116 Oct. 31 Close dividends fill in the blank 118 fill in the blank 120 3. If Retained Earnings had instead decreased $36,100 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 income or Net loss)

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 $13,350 Accounts Receivable 29,060 Supplies 4,540 Prepaid Insurance 9,810 Land 103,000 Buildings 371,000 Accumulated Depreciation-Buildings 120,900 Equipment 268,000 Accumulated Depreciation-Equipment 157,500 Accounts Payable 34,370 Salaries Payable 3,410 Unearned Rent 1,540 Common Stock 154,000 Retained Earnings 286,340 Dividends 25,800 Service Fees 490,090 Rent Revenue 5,180 Salaries Expense 351,350 Depreciation Expense-Equipment 19,100 Rent Expense 16,000 Supplies Expense 11,300 Utilities Expense 10,220 Depreciation Expense-Buildings 6,810 Repairs Expense 5,630 Insurance Expense 3,090 Miscellaneous Expense 5,270 1,253,330 1,253,330 Required: 1. Prepare an income statement. The Gorman Group Income Statement For the Year Ended October 31, 2018 Revenues: fill in the blank 2 fill in the blank 4 Total Revenues fill in the blank 5 Expenses: fill in the blank 7 fill in the blank 9 fill in the blank 11 fill in the blank 13 fill in the blank 15 fill in the blank 17 fill in the blank 19 fill in the blank 21 fill in the blank 23 Total Expenses fill in the blank 24 Net income fill in the blank 25 Prepare a Retained Earnings Statement. The Gorman Group Retained Earnings Statement For the Year Ended October 31, 2018 fill in the blank 27 fill in the blank 29 fill in the blank 31 fill in the blank 33 fill in the blank 35 Prepare a balance sheet. The Gorman Group Balance Sheet October 31, 2018 Assets Liabilities Current assets: Current liabilities: fill in the blank 37 fill in the blank 39 fill in the blank 41 fill in the blank 43 fill in the blank 45 fill in the blank 47 fill in the blank 49 Total liabilities fill in the blank 50 Total current assets fill in the blank 51 Property, plant, and equipment: Stockholders' Equity fill in the blank 53 fill in the blank 55 fill in the blank 57 fill in the blank 59 fill in the blank 61 fill in the blank 63 fill in the blank 65 fill in the blank 67 fill in the blank 69 Total property, plant, and equipment fill in the blank 70 Total stockholders' equity fill in the blank 71 Total assets fill in the blank 72 Total liabilities and stockholders' equity fill in the blank 73 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 revenues fill in the blank 75 fill in the blank 76 fill in the blank 78 fill in the blank 79 fill in the blank 81 fill in the blank 82 Oct. 31 Close expenses fill in the blank 84 fill in the blank 85 fill in the blank 87 fill in the blank 88 fill in the blank 90 fill in the blank 91 fill in the blank 93 fill in the blank 94 fill in the blank 96 fill in the blank 97 fill in the blank 99 fill in the blank 100 fill in the blank 102 fill in the blank 103 fill in the blank 105 fill in the blank 106 fill in the blank 108 fill in the blank 109 fill in the blank 111 fill in the blank 112 Oct. 31 Close income/loss fill in the blank 114 fill in the blank 116 Oct. 31 Close dividends fill in the blank 118 fill in the blank 120 3. If Retained Earnings had instead decreased $36,100 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 income or Net loss)

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter4: The Accounting Cycle

Section: Chapter Questions

Problem 1PA: Financial statements and closing entries Beacons Company maintains and repairs warning lights, such...

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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	$13,350
Accounts Receivable	29,060
Supplies	4,540
Prepaid Insurance	9,810
Land	103,000
Buildings	371,000
Accumulated Depreciation-Buildings		120,900
Equipment	268,000
Accumulated Depreciation-Equipment		157,500
Accounts Payable		34,370
Salaries Payable		3,410
Unearned Rent		1,540
Common Stock		154,000
Retained Earnings		286,340
Dividends	25,800
Service Fees		490,090
Rent Revenue		5,180
Salaries Expense	351,350
Depreciation Expense-Equipment	19,100
Rent Expense	16,000
Supplies Expense	11,300
Utilities Expense	10,220
Depreciation Expense-Buildings	6,810
Repairs Expense	5,630
Insurance Expense	3,090
Miscellaneous Expense	5,270
	1,253,330	1,253,330

Required:

1. Prepare an income statement.

The Gorman Group Income Statement For the Year Ended October 31, 2018
Revenues:
	fill in the blank 2
	fill in the blank 4
Total Revenues		fill in the blank 5
Expenses:
	fill in the blank 7
	fill in the blank 9
	fill in the blank 11
	fill in the blank 13
	fill in the blank 15
	fill in the blank 17
	fill in the blank 19
	fill in the blank 21
	fill in the blank 23
Total Expenses		fill in the blank 24
Net income		fill in the blank 25

Prepare a Retained Earnings Statement.

The Gorman Group Retained Earnings Statement For the Year Ended October 31, 2018
		fill in the blank 27
	fill in the blank 29
	fill in the blank 31
		fill in the blank 33
		fill in the blank 35

Prepare a balance sheet.

The Gorman Group Balance Sheet October 31, 2018
Assets	Liabilities
Current assets:				Current liabilities:
		fill in the blank 37			fill in the blank 39
		fill in the blank 41			fill in the blank 43
		fill in the blank 45			fill in the blank 47
		fill in the blank 49		Total liabilities		fill in the blank 50
Total current assets			fill in the blank 51
Property, plant, and equipment:				Stockholders' Equity
		fill in the blank 53			fill in the blank 55
	fill in the blank 57				fill in the blank 59
	fill in the blank 61
		fill in the blank 63
	fill in the blank 65
	fill in the blank 67
		fill in the blank 69
Total property, plant, and equipment		fill in the blank 70	Total stockholders' equity	fill in the blank 71
Total assets			fill in the blank 72	Total liabilities and stockholders' equity	fill in the blank 73

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	Debit	Credit
2018
Oct. 31 Close revenues	fill in the blank 75	fill in the blank 76
	fill in the blank 78	fill in the blank 79
	fill in the blank 81	fill in the blank 82

Oct. 31 Close expenses	fill in the blank 84	fill in the blank 85
	fill in the blank 87	fill in the blank 88
	fill in the blank 90	fill in the blank 91
	fill in the blank 93	fill in the blank 94
	fill in the blank 96	fill in the blank 97
	fill in the blank 99	fill in the blank 100
	fill in the blank 102	fill in the blank 103
	fill in the blank 105	fill in the blank 106
	fill in the blank 108	fill in the blank 109
	fill in the blank 111	fill in the blank 112

Oct. 31 Close income/loss	fill in the blank 114
		fill in the blank 116

Oct. 31 Close dividends	fill in the blank 118
		fill in the blank 120

3. If Retained Earnings had instead decreased $36,100 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 income or Net loss)

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