Question

Blooming Flower Company was started in 2018 when it acquired $61,600 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 2018 $23, 200 27,200 11,700 5,400 2019 $11,300 31, 200 17,000 8, 150 2020 $19,000 37,900 19,000 9,550 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 statements for that year.)

Answer 1

It is observed that cash balance $ 52200 is incorrect value. Following are the correct value workings

2018 Inventory Opening Purchase Cost of Goods Sold Closing inventory 23200 11700 11500 2019 115001 11300 17000 5800 2020 58001 19000 19000 5800

2018 2020 71950 Cash account Opening Share realisation Less: Purchase of material Add: sales realisation Less: Admin exp Closing Cash 61600 23200 27200 5400 60200 2019 60200 0 11300 31200 8150 71950 19000 37900 9550 81300

Income statement Particulars 2018 2019 2020 Sales 27200 31200 37900 Cost of Goods Sold 11700 17000 19000 Gross Profit 15500 14200 18900 57% 46% Operating Expenses Seeling and adminsto 5400 8150 9550 Net income 10100 60509350 50%

Blooming Flower Company Balance sheet As of the year ended december 31 Particulars 2018 2019 Assets Cash 6020071950 Merchandise Inventory 115001 5800 2020 81300| 58001 71700 77750 87100 Total assets Liabilities Stock holder's equity Comman stock Retained earning 616006160061600| 1010016150 25500 Total Stockholders equity Total liabilities and stockholders equity 7170077750 71700 7 7750 87100 87100