Question

Current Attempt in Progress These items are taken from the financial statements of Blossom Company at December 31, 2022. Buildings Accounts receivable Prepaid insurance Cash Equipment Land Insurance expense Depreciation expense Interest expense Common stock Retained earnings January 1, 2022) Accumulated depreciation-buildings Accounts payable Notes payable Accumulated depreciation-equipment Interest payable Service revenue $107,916 12,852 3,264 12,077 84,048 62,424 796 5,406 2,652 61,200 40,801 46,512 9,690 95,472 19,094 3,672 14,994 Prepare a classifted balance sheet. Assume that $13,872 of the note payable will be paid in 2023. (List Current Assets in order Equipment in order of Land, Buildings and Equipment.) BLOSSOM COMPANY Balance Sheet

Answer 1

Blossom Company
Balance Sheet
December 31, 2022
Assets
Current assets:
Cash		$12,077
Accounts receivable		$12,852
Prepaid insurance		$3,264
Total current assets			$28,193
Property, Plant & Equipment:
Land		$62,424
Building	$107,916
Accumulated dep.-Building	($46,512)	$61,404
Equipment	$84,048
Accumulated dep.-Equipment	($19,094)	$64,954	$188,782
Total Assets			$216,975
Liabilities:
Current Liabilities
Accounts payable		$9,690
Notes payable		$13,872
Interest payable		$3,672
Total current liabilities			$27,234
Long term liabilities
Note payable ($95472-$13872)			$81,600
Total liabilities			$108,834
Shareholders' Equity:
Common stock		$61,200
Retained earnings (W.N1)		$46,941
Total stockholders' Equity			$108,141
Total Liabilities and SE			$216,975

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W.N 1

Income statement
Revenue	$14,994
Less: Expense
Insurance expense	($796)
Depreciation expense	($5,406)
Interest expense	($2,652)
Net income	$6,140
Retained earnings
Beginning balance	$40,801
Add: Net income	$6,140
Ending balance	$46,941