Question

You are provided with the following information for Blossom Company, effective as of its April 30, 2022, year-end. $ 840 Accounts payable 840 Accounts receivable Accumulated depreciation-equipment 580 Cash 1,400 Common stock 17,200 Cost of goods sold 1,000 Depreciation expense 365 Dividends 335 Equipment 2,530 Goodwill 1,700 Income tax expense 160 Income taxes payable 145 Insurance expense 300 Interest expense 510 970 Inventory 14,985 Investment in land Land 2,500 Mortgage payable (long-term) 3,700 Notes payable (short-term) 70 Prepaid insurance 70 Retained earnings (beginning) 1,700 Salaries and wages expense 600 Salaries and wages payable 230 Sales revenue 5,100 Stock investments (short-term) 1,300

Answer 1

Answer- BLOSSOM COMPANY

INCOME STATEMENT

FOR THE YEAR ENDED APRIL 30,2022

Sales revenue		$5,100
Less:-
Cost of goods sold	$1,000
Salaries and wages expenses	$600
Interest expenses	$510
Depreciation expenses	$365
Insurance expenses	$300
Income tax expenses	$160
Total expenses		$2,935
Net Income		$2,165

BLOSSOM COMPANY

RETAINED EARNINGS STATEMENT

FOR THE YEAR ENDED APRIL30,2022

Retained earnings May 1,2021	$1,700
Add:-Net income	$2,165
	3,865
Less:dividends	$335
Retained earnings April 30,2022	$3,530

BLOSSOM COMPANY

BALANCE SHEET

AS AT APRIL 30,2022

ASSETS
Current Assets
Cash		$1,400
Short-term investment		$1,300
Accounts receivable		$840
Inventory		$970
Prepaid insurance		$70
Total Current Assets			$4,580
Intangible Assets
Goodwill			$1,700
Property,Plant and Equipment
Land		$2,500
Equipment	$2,530
Less- Accumulated depreciation-equipment	$580	$1,950
Total Property, Plant and Equipment			$4,450
Long -term Investment:-
Investment in Land			$14,985
Total Assets			$25,715
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:-
Notes Payable		$70
Accounts Payable		$840
Salaries and wages payable		$230
Income tax payable		$145
Total current liabilities			$1,285
Mortgage payable			$3,700
Total Liabilities			$4985
Stockholders' equity:-
Common Stock		$17,200
Retained earnings		$3,530
Total stockholders' equity			$20,730
Total Liabilities and Stockholders' Equity			$25,715

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