complete all parts of the question thanks Financial Statements and Closing Entri
ID: 2547725 • Letter: C
Question
complete all parts of the question thanks
Financial Statements and Closing Entries
The Gorman Group is a financial planning services firm owned and operated by Nicole Gorman. As of October 31, 2019, the end of the fiscal year, the accountant for The Gorman Group prepared an end-of-period spreadsheet, part of which follows:
Required:
1. Prepare an income statement.
Prepare a statement of owner's equity (no additional investments were made during the year.)
Prepare a balance sheet.
2. Journalize the entries that were required to close the accounts at October 31. For a compound transaction, if an amount box does not require an entry, leave it blank.
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?
$
End-of-Period Spreadsheet
For the Year Ended October 31, 2019 Adjusted Trial Balance Account Title Dr. Cr. Cash $12,910 Accounts Receivable 28,100 Supplies 4,390 Prepaid Insurance 9,480 Land 100,000 Buildings 359,000 Accumulated Depreciation-Buildings 116,900 Equipment 259,000 Accumulated Depreciation-Equipment 152,300 Accounts Payable 33,230 Salaries Payable 3,290 Unearned Rent 1,490 Nicole Gorman, Capital 426,230 Nicole Gorman, Drawing 24,900 Service Fees 473,900 Rent Revenue 5,000 Salaries Expense 339,740 Depreciation Expense—Equipment 18,400 Rent Expense 15,500 Supplies Expense 10,930 Utilities Expense 9,880 Depreciation Expense—Buildings 6,590 Repairs Expense 5,440 Insurance Expense 2,990 Miscellaneous Expense 5,090 1,212,340 1,212,340
Explanation / Answer
Gorman Group Income Statement For the year ended October 31, 2019 Particulars Amount Amount Revenues:- Service Fees $ 4,73,900.00 Rent Revenue $ 5,000.00 Total Income $ 4,78,900.00 Expenses:- Salaries $ 3,39,740.00 Supplies $ 4,390.00 Depreciation - Equipment $ 18,400.00 Rent $ 15,500.00 Supplies expenses $ 10,930.00 Utilities expenses $ 9,880.00 Depreciation - Building $ 6,590.00 Repairs Expenses $ 5,440.00 Insurance expenses $ 2,990.00 Misc Expenses $ 5,090.00 Total Expenses $ 4,18,950.00 Profit $ 59,950.00 Gorman Group Statement of Owners Equity For the year ended October 31, 2019 Particulars Amount Amount Nicole Gorman Capital $ 4,26,230.00 (+) Profit $ 59,950.00 (-) Drawings $ -24,900.00 Ending capital $ 4,61,280.00 Gorman Group Balancesheet October 31, 2019 Assets Amount Amount Liabilities Amount Amount Current Assets:- Current Liabilities Cash $ 12,910.00 Accounts Payable $ 33,230.00 Accounts Receivable $ 28,100.00 Salaries payable $ 3,290.00 Prepaid Insurance $ 9,480.00 Unearned rent $ 1,490.00 Total Current Assets $ 50,490.00 Total Current Liabilities $ 38,010.00 Property, Plant and Equipment Owners Equity $ 4,61,280.00 Land $ 1,00,000.00 Buildings $ 3,59,000.00 Equipment $ 2,59,000.00 Accumulated Dep - Building $ -1,16,900.00 Accumulated Dep - Equipment $ -1,52,300.00 Total Property, plant and equipment $ 4,48,800.00 Total Assets $ 4,99,290.00 Total Liabilities and owners equity $ 4,99,290.00 Journal Oct 31 - Depreciation Building Depreciation on Building A/c Dr $ 6,590.00 To Depreciation A/c $ 6,590.00 Oct 31 - Depreciation Equipment Depreciation on Equipment A/c Dr $ 18,400.00 To Depreciation A/c $ 18,400.00 Oct 31- Profit Transfer to capital $ 59,950.00 Profit A/c Dr $ 59,950.00 To Capital A/c
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.