can you explain how to get the numbers on the balance sheet ?
Transcribed Image Text:Blooming Flower Company was started in Year 1 when it acquired $61,900 cash from the issue of common stock. The following data
summarize the company's first three years' operating activities. Assume that all transactions were cash transactions,
Purchases of inventory
Sales
Cost of goods sold
Selling and administrative expenses
Year 1
$ 23,800
27,700
12,400
5,330
Income
Statements
Year 2
$ 10,600
31,700
17,800
8,030
Balance
Sheets
Year 3
$ 18,500
36,700
Required:
Prepare an income statement (use multistep format) and balance sheet for each fiscal year. (Hint: Record the transaction data for each
accounting period in the accounting equation before preparing the staterbents for that year.)
Complete this question by entering your answers in the tabs below.
19,900
9,400
Answer is complete but not entirely correct.
Prepare a balance sheet for each fiscal year. (Hint: Record the transaction data for each accounting period in the accounting
equation before preparing the statements for that year.).
BLOOMING FLOWER COMPANY
Transcribed Image Text:Assets
Cash
Merchandise inventory
Total assets
Liabilities
Stockholders' equity
Common stock
Retained earnings
BLOOMING FLOWER COMPANY
Balance Sheets
As of Year Ended December 31
Year 1
Total stockholders' equity
Total liabilities and stockholders' equity
$ 62,900
Year 2
$ 51,500 $ 56,970 $ 66,370
11,400
3,800 X
3,900
61,900
11,400 X
73,300
$ 73,300
Year 3
$ 60,770 $ 70,270
61,900
13,870
75,770
$ 75,770
61,900
8,370 X
70,270
$ 70,270
Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
