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: The Gorman Group End-of-Period Spreadsheet For the Year Ended October 31, 2019 Adjusted Trial Balance Account Title Dr. Cr. Cash 14,380 Accounts Receivable 31,300 Supplies 4,890 Prepaid Insurance 10,560 Land 111,000 Buildings 400,000 Accumulated Depreciation-Buildings 130,300 Equipment 289,000 Accumulated Depreciation-Equipment 169,700 Accounts Payable 37,020 Salaries Payable 3,670 Unearned Rent 1,660 Nicole Gorman, Capital 474,850 Nicole Gorman, Drawing 27,800 Service Fees 527,880 Rent Revenue 5,570 Salaries Expense 378,440 Depreciation Expense—Equipment 20,500 Rent Expense 17,200 Supplies Expense 12,180 Utilities Expense 11,000 Depreciation Expense—Buildings 7,340 Repairs Expense 6,060 Insurance Expense 3,330 Miscellaneous Expense 5,670 1,350,650 1,350,650 Required: 1. Prepare an income statement. Gorman Group Income Statement For the Year Ended October 31, 2019 Revenues: Service fees $fill in the blank 2 Rent revenue fill in the blank 4 Total revenues $fill in the blank 5 Expenses: Salaries expense $fill in the blank 7 Depreciation expense-equipment fill in the blank 9 Rent expense fill in the blank 11 Supplies expense fill in the blank 13 Utilities expense fill in the blank 15 Depreciation expense-buildings fill in the blank 17 Repairs expense fill in the blank 19 Insurance expense fill in the blank 21 Miscellaneous expense fill in the blank 23 Total expenses fill in the blank 24 Net income $fill in the blank 25 Prepare a statement of owner's equity (no additional investments were made during the year). Gorman Group Statement of Owner's Equity For the Year Ended October 31, 2019 Nicole Gorman, capital, November 1, 2018 $fill in the blank 27 Net income for the year $fill in the blank 29 Withdrawals fill in the blank 31 Increase in owner's equity fill in the blank 33 Nicole Gorman, capital, October 31, 2019 $fill in the blank 35 Prepare a balance sheet. Gorman Group Balance Sheet October 31, 2019 Assets Liabilities Current assets: Current liabilities: Cash $fill in the blank 37 Accounts payable $fill in the blank 39 Accounts receivable fill in the blank 41 Salaries payable fill in the blank 43 Supplies fill in the blank 45 Unearned rent fill in the blank 47 Prepaid insurance fill in the blank 49 Total liabilities $fill in the blank 50 Total current assets $fill in the blank 51 Property, plant, and equipment: Owner's Equity Land $fill in the blank 53 Nicole Gorman, capital fill in the blank 55 Buildings $fill in the blank 57 Less accumulated depreciation-buildings fill in the blank 59 fill in the blank 60 Equipment $fill in the blank 62 Less accumulated depreciation-equipment fill in the blank 64 fill in the blank 65 Total property, plant, and equipment fill in the blank 66 Total assets $fill in the blank 67 Total liabilities and owner's equity $fill in the blank 68 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. Date Account Debit Credit Oct. 31 Service Fees fill in the blank 70 fill in the blank 71 Rent Revenue fill in the blank 73 fill in the blank 74 Salaries Expense fill in the blank 76 fill in the blank 77 Depreciation Expense—Equipment fill in the blank 79 fill in the blank 80 Rent Expense fill in the blank 82 fill in the blank 83 Supplies Expense fill in the blank 85 fill in the blank 86 Utilities Expense fill in the blank 88 fill in the blank 89 Depreciation Expense—Buildings fill in the blank 91 fill in the blank 92 Repairs Expense fill in the blank 94 fill in the blank 95 Insurance Expense fill in the blank 97 fill in the blank 98 Miscellaneous Expense fill in the blank 100 fill in the blank 101 Nicole Gorman, Capital fill in the blank 103 fill in the blank 104 Oct. 31 Nicole Gorman, Capital fill in the blank 106 Nicole Gorman, Drawing fill in the blank 108 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? $fill in the blank 109 Net Income? need #3

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: The Gorman Group End-of-Period Spreadsheet For the Year Ended October 31, 2019 Adjusted Trial Balance Account Title Dr. Cr. Cash 14,380 Accounts Receivable 31,300 Supplies 4,890 Prepaid Insurance 10,560 Land 111,000 Buildings 400,000 Accumulated Depreciation-Buildings 130,300 Equipment 289,000 Accumulated Depreciation-Equipment 169,700 Accounts Payable 37,020 Salaries Payable 3,670 Unearned Rent 1,660 Nicole Gorman, Capital 474,850 Nicole Gorman, Drawing 27,800 Service Fees 527,880 Rent Revenue 5,570 Salaries Expense 378,440 Depreciation Expense—Equipment 20,500 Rent Expense 17,200 Supplies Expense 12,180 Utilities Expense 11,000 Depreciation Expense—Buildings 7,340 Repairs Expense 6,060 Insurance Expense 3,330 Miscellaneous Expense 5,670 1,350,650 1,350,650 Required: 1. Prepare an income statement. Gorman Group Income Statement For the Year Ended October 31, 2019 Revenues: Service fees $fill in the blank 2 Rent revenue fill in the blank 4 Total revenues $fill in the blank 5 Expenses: Salaries expense $fill in the blank 7 Depreciation expense-equipment fill in the blank 9 Rent expense fill in the blank 11 Supplies expense fill in the blank 13 Utilities expense fill in the blank 15 Depreciation expense-buildings fill in the blank 17 Repairs expense fill in the blank 19 Insurance expense fill in the blank 21 Miscellaneous expense fill in the blank 23 Total expenses fill in the blank 24 Net income $fill in the blank 25 Prepare a statement of owner's equity (no additional investments were made during the year). Gorman Group Statement of Owner's Equity For the Year Ended October 31, 2019 Nicole Gorman, capital, November 1, 2018 $fill in the blank 27 Net income for the year $fill in the blank 29 Withdrawals fill in the blank 31 Increase in owner's equity fill in the blank 33 Nicole Gorman, capital, October 31, 2019 $fill in the blank 35 Prepare a balance sheet. Gorman Group Balance Sheet October 31, 2019 Assets Liabilities Current assets: Current liabilities: Cash $fill in the blank 37 Accounts payable $fill in the blank 39 Accounts receivable fill in the blank 41 Salaries payable fill in the blank 43 Supplies fill in the blank 45 Unearned rent fill in the blank 47 Prepaid insurance fill in the blank 49 Total liabilities $fill in the blank 50 Total current assets $fill in the blank 51 Property, plant, and equipment: Owner's Equity Land $fill in the blank 53 Nicole Gorman, capital fill in the blank 55 Buildings $fill in the blank 57 Less accumulated depreciation-buildings fill in the blank 59 fill in the blank 60 Equipment $fill in the blank 62 Less accumulated depreciation-equipment fill in the blank 64 fill in the blank 65 Total property, plant, and equipment fill in the blank 66 Total assets $fill in the blank 67 Total liabilities and owner's equity $fill in the blank 68 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. Date Account Debit Credit Oct. 31 Service Fees fill in the blank 70 fill in the blank 71 Rent Revenue fill in the blank 73 fill in the blank 74 Salaries Expense fill in the blank 76 fill in the blank 77 Depreciation Expense—Equipment fill in the blank 79 fill in the blank 80 Rent Expense fill in the blank 82 fill in the blank 83 Supplies Expense fill in the blank 85 fill in the blank 86 Utilities Expense fill in the blank 88 fill in the blank 89 Depreciation Expense—Buildings fill in the blank 91 fill in the blank 92 Repairs Expense fill in the blank 94 fill in the blank 95 Insurance Expense fill in the blank 97 fill in the blank 98 Miscellaneous Expense fill in the blank 100 fill in the blank 101 Nicole Gorman, Capital fill in the blank 103 fill in the blank 104 Oct. 31 Nicole Gorman, Capital fill in the blank 106 Nicole Gorman, Drawing fill in the blank 108 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? $fill in the blank 109 Net Income? need #3

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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The Gorman Group End-of-Period Spreadsheet For the Year Ended October 31, 2019
	Adjusted Trial Balance
Account Title	Dr.	Cr.
Cash	14,380
Accounts Receivable	31,300
Supplies	4,890
Prepaid Insurance	10,560
Land	111,000
Buildings	400,000
Accumulated Depreciation-Buildings		130,300
Equipment	289,000
Accumulated Depreciation-Equipment		169,700
Accounts Payable		37,020
Salaries Payable		3,670
Unearned Rent		1,660
Nicole Gorman, Capital		474,850
Nicole Gorman, Drawing	27,800
Service Fees		527,880
Rent Revenue		5,570
Salaries Expense	378,440
Depreciation Expense—Equipment	20,500
Rent Expense	17,200
Supplies Expense	12,180
Utilities Expense	11,000
Depreciation Expense—Buildings	7,340
Repairs Expense	6,060
Insurance Expense	3,330
Miscellaneous Expense	5,670
	1,350,650	1,350,650

Required:

1. Prepare an income statement.

Gorman Group Income Statement For the Year Ended October 31, 2019
Revenues:
Service fees	$fill in the blank 2
Rent revenue	fill in the blank 4
Total revenues		$fill in the blank 5
Expenses:
Salaries expense	$fill in the blank 7
Depreciation expense-equipment	fill in the blank 9
Rent expense	fill in the blank 11
Supplies expense	fill in the blank 13
Utilities expense	fill in the blank 15
Depreciation expense-buildings	fill in the blank 17
Repairs expense	fill in the blank 19
Insurance expense	fill in the blank 21
Miscellaneous expense	fill in the blank 23
Total expenses		fill in the blank 24
Net income		$fill in the blank 25

Prepare a statement of owner's equity (no additional investments were made during the year).

Gorman Group Statement of Owner's Equity For the Year Ended October 31, 2019
Nicole Gorman, capital, November 1, 2018		$fill in the blank 27
Net income for the year	$fill in the blank 29
Withdrawals	fill in the blank 31
Increase in owner's equity		fill in the blank 33
Nicole Gorman, capital, October 31, 2019		$fill in the blank 35

Prepare a balance sheet.

Gorman Group Balance Sheet October 31, 2019
Assets	Liabilities
Current assets:				Current liabilities:
Cash		$fill in the blank 37		Accounts payable	$fill in the blank 39
Accounts receivable		fill in the blank 41		Salaries payable	fill in the blank 43
Supplies		fill in the blank 45		Unearned rent	fill in the blank 47
Prepaid insurance		fill in the blank 49		Total liabilities		$fill in the blank 50
Total current assets			$fill in the blank 51
Property, plant, and equipment:				Owner's Equity
Land		$fill in the blank 53		Nicole Gorman, capital		fill in the blank 55
Buildings	$fill in the blank 57
Less accumulated depreciation-buildings	fill in the blank 59	fill in the blank 60
Equipment	$fill in the blank 62
Less accumulated depreciation-equipment	fill in the blank 64	fill in the blank 65
Total property, plant, and equipment		fill in the blank 66
Total assets			$fill in the blank 67	Total liabilities and owner's equity	$fill in the blank 68

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.

Date	Account	Debit	Credit

Oct. 31	Service Fees	fill in the blank 70	fill in the blank 71
	Rent Revenue	fill in the blank 73	fill in the blank 74
	Salaries Expense	fill in the blank 76	fill in the blank 77
	Depreciation Expense—Equipment	fill in the blank 79	fill in the blank 80
	Rent Expense	fill in the blank 82	fill in the blank 83
	Supplies Expense	fill in the blank 85	fill in the blank 86
	Utilities Expense	fill in the blank 88	fill in the blank 89
	Depreciation Expense—Buildings	fill in the blank 91	fill in the blank 92
	Repairs Expense	fill in the blank 94	fill in the blank 95
	Insurance Expense	fill in the blank 97	fill in the blank 98
	Miscellaneous Expense	fill in the blank 100	fill in the blank 101
	Nicole Gorman, Capital	fill in the blank 103	fill in the blank 104

Oct. 31	Nicole Gorman, Capital	fill in the blank 106
	Nicole Gorman, Drawing		fill in the blank 108

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?
$fill in the blank 109 Net Income?

need #3

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