Question

Blossom Company was organized on July 1, 2020. Quarterly financial statements are prepared. The unadjusted and adjusted trial balances as of September 30 are shown as follows. Blossom Company Trial Balance September 30, 2020 Unadjusted Dr. Cr. Cash $ 8,800 Accounts Receivable 10,400 Supplies 1,550 Prepaid Rent 2.250 Equipment 18,900 Accumulated Depreciation Equipment $ 0 Notes Payable 9,200 Accounts Payable 2,500 Salaries and Wages Payable 0 Interest Payable 0 Unearned Rent Revenue 1,900 Common Stock 22,400 Dividends 1,650 Service Revenue 17,720 Rent Revenue 1,360 Salaries and Wages Expense 8,100 Rent Expense 1,950 Depreciation Expense Supplies Expense Utilities Expense 1,480 Interest Expense $ 55,080 $ 55,080 Adjusted Dr. Cr. $ 8,800 11,400 600 1,200 18,900 $ 750 9,200 2,500 720 92 1,000 22,400 1.650 18,720 2,260 8,820 3,000 750 950 1,480 92 $ 57,642 $ 57,642

Answer 1

Blossom Company
Income Statement
For the 3 Months Ending September 30, 2020
Revenues
Service Revenue	18,720
Rent Revenue	2,260
Total Revenues		20,980
Expenses
Salaries and Wages Expense	8,820
Rent Expense	3,000
Depreciation Expense	750
Supplies Expense	950
Utilities Expense	1,480
Interest Expense	92
Total Expenses		15,092
Net Income/ (Loss)		5,888

Retained Earnings Statement
For the 3 Months Ending September 30, 2020
Retained Earnings, July 1, 2020		-
Add: Net Income		5,888
		5,888
Less: Dividends		(1,650)
Retained Earnings, September 30, 2020		4,238