Financial Statements and Closing EntriesThe Gorman Group is a financial planning services firm owned and operated by Nicole Gorman. As of October 31, 20Y9, the end of the fiscal year, the accountant for The Gorman Group prepared an end-of-period spreadsheet, part of which follows: The Gorman GroupEnd-of-Period SpreadsheetFor the Year Ended October 31, 20Y9 Adjusted Trial BalanceAccount TitleDr.Cr.Cash$17,670 Accounts Receivable38,460 Supplies6,010 Prepaid Insurance12,980 Land137,000 Buildings492,000 Accumulated Depreciation-Buildings 160,100Equipment355,000 Accumulated Depreciation-Equipment 208,500Accounts Payable 45,500Salaries Payable 4,510Unearned Rent 2,040Common Stock 205,000Retained Earnings 379,460Dividends34,100 Service Fees 648,780Rent Revenue 6,850Salaries Expense465,110 Depreciation Expense-Equipment25,200 Rent Expense21,200 Supplies Expense14,960 Utilities Expense13,520 Depreciation Expense-Buildings9,020 Repairs Expense7,450 Insurance Expense4,090 Miscellaneous Expense6,970 1,660,7401,660,740

Closing entry means where all nominal account i.e. revenue and expenses account will be transfer…

Answered: Financial Statements and Closing…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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, 20Y9, 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, 20Y9
	Adjusted Trial Balance
Account Title	Dr.	Cr.
Cash	$17,670
Accounts Receivable	38,460
Supplies	6,010
Prepaid Insurance	12,980
Land	137,000
Buildings	492,000
Accumulated Depreciation-Buildings		160,100
Equipment	355,000
Accumulated Depreciation-Equipment		208,500
Accounts Payable		45,500
Salaries Payable		4,510
Unearned Rent		2,040
Common Stock		205,000
Retained Earnings		379,460
Dividends	34,100
Service Fees		648,780
Rent Revenue		6,850
Salaries Expense	465,110
Depreciation Expense-Equipment	25,200
Rent Expense	21,200
Supplies Expense	14,960
Utilities Expense	13,520
Depreciation Expense-Buildings	9,020
Repairs Expense	7,450
Insurance Expense	4,090
Miscellaneous Expense	6,970
	1,660,740	1,660,740