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:The Gorman GroupEnd-of-Period SpreadsheetFor the Year Ended October 31, 2019 Adjusted Trial BalanceAccount Title Dr. Cr. Cash $11,470 Accounts Receivable 24,960 Supplies 3,900 Prepaid Insurance 8,420 Land 89,000 Buildings 319,000 Accumulated Depreciation-Buildings 103,900Equipment 230,000 Accumulated Depreciation-Equipment 135,300Accounts Payable 29,520Salaries Payable 2,930Unearned Rent 1,330Nicole Gorman, Capital 378,780Nicole Gorman, Drawing 22,200 Service Fees 421,010Rent Revenue 4,450Salaries Expense 301,820 Depreciation Expense—Equipment 16,400 Rent Expense 13,700 Supplies Expense 9,710 Utilities Expense 8,780 Depreciation Expense—Buildings 5,850 Repairs Expense 4,840 Insurance Expense 2,650 Miscellaneous Expense 4,520 1,077,220 1,077,220Required:1. Prepare an income statement. A. Prepare a statement of owner's equity (no additional investments were made during the year).B. 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?