The following is the trial balance of Blossom Corporation at December 31, 2020. BLOSSOM CORPORATION TRIAL BALANCE DECEMBER 31, 2020 Debits Credits Purchase Discounts $30,000 Cash $569,100 Accounts Receivable 315,000 Rent Revenue 54,000 Retained Earnings 480,000 Salaries and Wages Payable 54,000 Sales Revenue 3,300,000 Notes Receivable 330,000 Accounts Payable 147,000 Accumulated Depreciation—Equipment 84,000 Sales Discounts 43,500 Sales Returns and Allowances 52,500 Notes Payable 210,000 Selling Expenses 696,000 Administrative Expenses 297,000 Common Stock 900,000 Income Tax Expense 161,700 Cash Dividends 135,000 Allowance for Doubtful Accounts 15,000 Supplies 42,000 Freight-in 60,000 Land 210,000 Equipment 420,000 Bonds Payable 300,000 Gain on Sale of Land 90,000 Accumulated Depreciation—Buildings 58,800 Inventory 267,000 Buildings 294,000 Purchases 1,830,000 Totals $5,722,800 $5,722,800 A physical count of inventory on December 31 resulted in an inventory amount of $192,000; thus, cost of goods sold for 2020 is $1,935,000. Part 2 Prepare a retained earnings statement. Assume that the only changes in retained earnings during the current year were from net income and dividends. (List items that increase retained earnings first.) BLOSSOM CORPORATION Retained Earnings Statement December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020 Cash DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues $ AddLess: Cash DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues AddLess: Cash DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues Cash DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues $ List of Accounts Assistance Used Accumulated Depreciation—Equipment Administrative Expenses Bad Debt Expense Casualty loss Cost of Goods Sold Delivery Expense Depreciation Expense Dividend Revenue Entertainment Expense Equipment Gain on Sale of Plant Gain on Disposal of Land Income Tax Expense Interest Expense Interest Revenue Loss from Earthquake Damage Maintenance and Repairs Expense Miscellaneous Selling Expenses Mortgage Payable Net Sales Office Expense Other Administrative Expenses Property Tax Expense Rent Revenue Salaries and Wages Expense Salaries and Wages Payable Sales Commission Sales Discounts Sales Returns and Allowances Sales Revenue Selling Expenses Supplies Supplies Expenses Telephone and Internet Expense Travel Expense

The following is the trial balance of Blossom Corporation at December 31, 2020. BLOSSOM CORPORATION TRIAL BALANCE DECEMBER 31, 2020 Debits Credits Purchase Discounts $30,000 Cash $569,100 Accounts Receivable 315,000 Rent Revenue 54,000 Retained Earnings 480,000 Salaries and Wages Payable 54,000 Sales Revenue 3,300,000 Notes Receivable 330,000 Accounts Payable 147,000 Accumulated Depreciation—Equipment 84,000 Sales Discounts 43,500 Sales Returns and Allowances 52,500 Notes Payable 210,000 Selling Expenses 696,000 Administrative Expenses 297,000 Common Stock 900,000 Income Tax Expense 161,700 Cash Dividends 135,000 Allowance for Doubtful Accounts 15,000 Supplies 42,000 Freight-in 60,000 Land 210,000 Equipment 420,000 Bonds Payable 300,000 Gain on Sale of Land 90,000 Accumulated Depreciation—Buildings 58,800 Inventory 267,000 Buildings 294,000 Purchases 1,830,000 Totals $5,722,800 $5,722,800 A physical count of inventory on December 31 resulted in an inventory amount of $192,000; thus, cost of goods sold for 2020 is $1,935,000. Part 2 Prepare a retained earnings statement. Assume that the only changes in retained earnings during the current year were from net income and dividends. (List items that increase retained earnings first.) BLOSSOM CORPORATION Retained Earnings Statement December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020 Cash DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues $ AddLess: Cash DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues AddLess: Cash DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues Cash DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues $ List of Accounts Assistance Used Accumulated Depreciation—Equipment Administrative Expenses Bad Debt Expense Casualty loss Cost of Goods Sold Delivery Expense Depreciation Expense Dividend Revenue Entertainment Expense Equipment Gain on Sale of Plant Gain on Disposal of Land Income Tax Expense Interest Expense Interest Revenue Loss from Earthquake Damage Maintenance and Repairs Expense Miscellaneous Selling Expenses Mortgage Payable Net Sales Office Expense Other Administrative Expenses Property Tax Expense Rent Revenue Salaries and Wages Expense Salaries and Wages Payable Sales Commission Sales Discounts Sales Returns and Allowances Sales Revenue Selling Expenses Supplies Supplies Expenses Telephone and Internet Expense Travel Expense

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Part 2

Prepare a retained earnings statement. Assume that the only changes in retained earnings during the current year were from net income and dividends. (List items that increase retained earnings first.)

BLOSSOM CORPORATION Retained Earnings Statement December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020
Cash DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues		$
AddLess: Cash DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues

AddLess: Cash DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues
Cash DividendsExpensesNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues		$

List of Accounts

Assistance Used

Accumulated Depreciation—Equipment
Administrative Expenses
Bad Debt Expense
Casualty loss
Cost of Goods Sold
Delivery Expense
Depreciation Expense
Dividend Revenue
Entertainment Expense
Equipment
Gain on Sale of Plant
Gain on Disposal of Land
Income Tax Expense
Interest Expense
Interest Revenue
Loss from Earthquake Damage
Maintenance and Repairs Expense
Miscellaneous Selling Expenses
Mortgage Payable
Net Sales
Office Expense
Other Administrative Expenses
Property Tax Expense
Rent Revenue
Salaries and Wages Expense
Salaries and Wages Payable
Sales Commission
Sales Discounts
Sales Returns and Allowances
Sales Revenue
Selling Expenses
Supplies
Supplies Expenses
Telephone and Internet Expense
Travel Expense

Expert Solution

Step 1

Required calculations are given below:

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

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.

BLOSSOM CORPORATION TRIAL BALANCE DECEMBER 31, 2020
	Debits	Credits
Purchase Discounts			$30,000
Cash	$569,100
Accounts Receivable	315,000
Rent Revenue			54,000
Retained Earnings			480,000
Salaries and Wages Payable			54,000
Sales Revenue			3,300,000
Notes Receivable	330,000
Accounts Payable			147,000
Accumulated Depreciation—Equipment			84,000
Sales Discounts	43,500
Sales Returns and Allowances	52,500
Notes Payable			210,000
Selling Expenses	696,000
Administrative Expenses	297,000
Common Stock			900,000
Income Tax Expense	161,700
Cash Dividends	135,000
Allowance for Doubtful Accounts			15,000
Supplies	42,000
Freight-in	60,000
Land	210,000
Equipment	420,000
Bonds Payable			300,000
Gain on Sale of Land			90,000
Accumulated Depreciation—Buildings			58,800
Inventory	267,000
Buildings	294,000
Purchases	1,830,000
Totals	$5,722,800		$5,722,800