Question

The Photos are connected.

These items are taken from the financial statements of Blossom Company at December 31, 2022. $84,640 10,080 2,560 9,472 65,920 48,960 624 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 4,240 2,080 48,000 32,000 36,480 7,600 74,880 14,976 2,880 11,760 Prepare a classified balance sheet. Assume that $10,880 of the note payable will be paid in 2023. (List Current Assets in order of liquidity and Property, Plant and Equipment in order of Land, Buildings and Equipment.)

Answer 1

$ 22,112 Blossom Company Balance Sheet December.31,2022 Assets Current assets : Cash $ 9,472 Accounts Receivables $10,080 Prepaid Insurance $ 2,560 Total Current assets Property, plant and Equipment Land $48,960 Equipment $65,920 Less: accumulated depreciation - Equipment $ 14,976 $50,944 Buildings $ 84,640 Less: Accumulated Depreciation - Buildings $36,480 $48,160 Total Assets Liabilities and Stockholdes' Equity Current Liabilities Accounts Payable $ 7,600 Notes Payable $10,880 Interest Payable $ 2,880 Total current liabilities Long term liabilities Notes Payable Total Liabilities Stockholders' Equity Common stock $48,000 Retained Earnings $36,816 Total stockholders Equity Total Liabilities and Shareholders Equity $ 148,064 $ 170,176 $ 21,360 $ 64,000 $ 85,360 $ 84,816 $170,176

Working Notes: $11,760 Blossom Company Income statement For the Year Ended December.31, 2022 Revenue Service Revenue $11,760 Total Revenue Expenses : Depreciation Expense $ 4,240 Insurance Expense $ 624 Interest Expense $ 2,080 Total Expenses Net Income $ 6,944 $ 4,816 Blossom Company Statement of Retained Earnings For the Year Ended December.31, 2022 Retained Earnings January 1,2022 $32,000 Add: Net Income $ 4,816 $36,816 Less: Dividends Retained Earnings December 31, 2022 $36,816