Question

Current Attempt In Progress Blossom Company has a July 31 fiscal year end and uses a perpetual inventory system. The records of Blossom Company show the following data: 2021 2020 2019 port Income statement: Sales Cost of goods sold Operating expenses Balance sheet: Merchandise inventory $340,000 233,000 79,000 $325,000 230,000 79,000 $360,000 276,000 79,000 56,000 46,000 35,000 After its July 31, 2021 year end, Blossom discovered two errors: 1. At July 31, 2020, Blossom had $10,000 of goods held on consignment at another company that were not included in the physical count. 2. In July 2020, Blossom recorded a $15,000 inventory purchase on account that should have been recorded in August 2020 Prepare corrected income statements for Blossom for the years ended July 31, 2019, 2020, and 2021 BLOSSOM COMPANY Income Statement Year Ended July 31 2021 2020 2019 eBook

Answer 1

Blossom Company Income Statement Year ended Particulars 2021 2020 2019 Sales 340,000 325,000 360,000 Cost of Goods Sold 248,000 205,000 120,000 276,000 Gross Profit 92,000 84,000 Operating Expenses 79,000 79,000 79,000 Net profit 41,000 13,000 5,000 Amount ($) Note: 1 2020 COGS 230,000 ed Less: Consignment Inventory Less: Purchase of next year (10,000) (15,000) 205,000 3 2021 COGS 233,000 15,000 Add: Purchases not recorded 248,000