the end of the fiscal year, the accountant for The Gorman Group prepared an end-of-period spreadsheet, art of which follows:
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![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
Adjusted
Trial Balance Trial Balance
Dr.
Cr.
Account Title
Cash
Accounts Receivable
Supplies
Prepaid Insurance
Land
Buildings
Accumulated Depreciation-Buildings
Equipment
Accumulated Depreciation-Equipment
Accounts Payable
Salaries Payable
Unearned Rent
Common Stock
Retained Earnings
Dividends
Service Fees
Rent Revenue
Salaries Expense
Depreciation Expense-Equipment
Rent Expense
Supplies Expense
Utilities Expense
Depreciation Expense-Buildings
Repairs Expense
Insurance Expense
Miscellaneous Expense
14,490
31,550
4,930
10,650
112,000
403,000
291,000
28,000
381,530
20,700
17,400
12,280
11,090
7,400
6,110
3,350
5,720
1,361,200
131,300
171,100
37,320
3,700
1,680
167,000
311,290
532,190
5,620
1,361,200](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8dea3465-9522-4be8-92d2-04d57945509a%2F47c6bb33-2e15-4751-b19a-1d3dff1f0126%2F9uqwow_processed.jpeg&w=3840&q=75)
![Required:
1. Prepare an income statement.
Revenues:
Insurance expense
Total revenues
Expenses:
Total expenses
The Gorman Group
Income Statement
For the Year Ended October 31, 20Y9
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8dea3465-9522-4be8-92d2-04d57945509a%2F47c6bb33-2e15-4751-b19a-1d3dff1f0126%2F47ble9_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Income Statement Is One Of The Three Major Financial Statements That Shows The Profit Over a Specific Period, When Revenues Exceeds The Expenses.
Net Income = $72,230
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