BLOSSOM's balance sheet at December 31, 2020, is as follows.(See Image 1)(See Image 2)Other information about BLOSSOM is as follows.Salary expense, all paid with cash during 2021 $700Sales, all for cash 2,990Purchases, all for cash 2,020Inventory at 12/31/21 1,790Property originally cost $2,100 and is depreciated on a straight-line basis over 25 years with no residual value.Interest on the note payable is 10% annually and is paid in cash on 12/31 of each year.Dividends declared and paid are $190 in 2021.Prepare an income statement for 2021. (Round answers to 1 decimal place) Additional information concerning BLOSSOM's defined benefit pension plan is as follows.Projected benefit obligation at 12/31/20$818.3Plan assets (fair value) at 12/31/20473.3Unamortized past service cost at 12/31/20150Amortization of past service cost during 202115Service cost for 202140Discount rate10 %Expected rate of return on plan assets in 202112Actual return on plan assets in 202111.0Contributions to pension fund in 202163Benefits paid during 202144Expected remaining service life of employees15Average period to vesting of prior service costs10Unamortized net loss due to changes in actuarial assumptionsand deferred net losses on plan assets at 12/31/2094 BLOSSOM's balance sheet at December 31, 2020, is as follows.BLOSSOM, INC.BALANCE SHEETAS OF DECEMBER 31, 2020AssetsLiabilitiesCash$440Notes payable$1,000Inventory1,800Pension liability345Total current assets2,240Total liabilities1,345Plant and equipment2,100Stockholders' equityAccumulated depreciation(252 )Common stock2,0001,848Retained earnings987Total assets$4,088Accumulated other comprehensive income(244 )Total stockholders' equity2,743Total liabilities and stockholders' equity$4,088

Pension is defined as the fund collected from the taxpayer or employee during his term of…

Answered: BLOSSOM's balance sheet at December 31,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

BLOSSOM's balance sheet at December 31, 2020, is as follows.

(See Image 1)

(See Image 2)

Other information about BLOSSOM is as follows.

Salary expense, all paid with cash during 2021		$700
Sales, all for cash		2,990
Purchases, all for cash		2,020
Inventory at 12/31/21		1,790

Property originally cost $2,100 and is depreciated on a straight-line basis over 25 years with no residual value.

Interest on the note payable is 10% annually and is paid in cash on 12/31 of each year.

Dividends declared and paid are $190 in 2021.

Prepare an income statement for 2021. (Round answers to 1 decimal place)

Additional information concerning BLOSSOM's defined benefit pension plan is as follows.
Projected benefit obligation at 12/31/20
$818.3
Plan assets (fair value) at 12/31/20
473.3
Unamortized past service cost at 12/31/20
150
Amortization of past service cost during 2021
15
Service cost for 2021
40
Discount rate
10 %
Expected rate of return on plan assets in 2021
12
Actual return on plan assets in 2021
11.0
Contributions to pension fund in 2021
63
Benefits paid during 2021
44
Expected remaining service life of employees
15
Average period to vesting of prior service costs
10
Unamortized net loss due to changes in actuarial assumptions
and deferred net losses on plan assets at 12/31/20
94

BLOSSOM's balance sheet at December 31, 2020, is as follows.
BLOSSOM, INC.
BALANCE SHEET
AS OF DECEMBER 31, 2020
Assets
Liabilities
Cash
$440
Notes payable
$1,000
Inventory
1,800
Pension liability
345
Total current assets
2,240
Total liabilities
1,345
Plant and equipment
2,100
Stockholders' equity
Accumulated depreciation
(252 )
Common stock
2,000
1,848
Retained earnings
987
Total assets
$4,088
Accumulated other comprehensive income
(244 )
Total stockholders' equity
2,743
Total liabilities and stockholders' equity
$4,088

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.

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