Blossom Corporation\'s trial balance at December 31, 2020, is presented below. A
ID: 2332444 • Letter: B
Question
Blossom Corporation's trial balance at December 31, 2020, is presented below. All 2020 tra recorded except for the items described below. actions have been Debit Credit Cash Accounts Receivable n Inventory Land 94,400 Equipment Allowance for Doubtful Accounts Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Accounts Payable Interest Payable Dividends Payable Unearned Rent Revenue Bonds Payable (10%) Common Stock ($10 par) 29,500 19,500 8,000 54,000 27,000 5,400 ount Paid-in Capital in Excess of Par-Common Preferred Stock ($20 par) Paid-in Capital in Excess of Par-Preferred -Eq Retained Earnings Treasury Stock Cash Dividends 33,960 590,000 Rent Revenue of Interest Expense Cost of Goods Sold 391,000 37,700 Salaries and Wages Expense 63,400 Total $780,400 $780,400Explanation / Answer
Answers
Income Statement
for the year ended 31 Dec, 2020
Sales revenue
$ 590,000.00
Cost of Goods Sold
$ 391,000.00
Gross Profits
$ 199,000.00
Operating Expenses:
Salaries & Wages expenses
$ 63,400.00
Depreciation Expense
$ 5,650.00
Bad Debt Expense
$ 4,660.00
Other Operating Expenses
$ 37,700.00
Total Operating Expense
$ 111,410.00
Operating Income
$ 87,590.00
Other Income:
Rent revenue
$ 6,000.00
Other expenses:
Interest Expense
$ 5,400.00
$ 600.00
Net Income
$ 88,190.00
Income Statement
for the year ended 31 Dec, 2020
Sales revenue
$ 590,000.00
Cost of Goods Sold
$ 391,000.00
Gross Profits
$ 199,000.00
Operating Expenses:
Salaries & Wages expenses
$ 63,400.00
Depreciation Expense
$ 5,650.00
Bad Debt Expense
$ 4,660.00
Other Operating Expenses
$ 37,700.00
Total Operating Expense
$ 111,410.00
Operating Income
$ 87,590.00
Other Income:
Rent revenue
$ 6,000.00
Other expenses:
Interest Expense
$ 5,400.00
$ 600.00
Net Income
$ 88,190.00