Question

Problem 4-03A a-d (Video) The completed financial statement columns of the worksheet for Blossom Company are shown as follows: Blossom Company Worksheet For the Year Ended December 31, 2020 Income Statement Balance Sheet Account Titles Dr. Cr. Dr. Cr. Cash Account No. 101 112 130 157 8,800 10,600 3,000 23,800 158 201 212 4,500 9,200 2,500 301 19,700 Accounts Receivable Prepaid Insurance Equipment Accumulated Depreciation-Equip. Accounts Payable Salaries and Wages Payable Owner's Capital Owner's Drawings Service Revenue Maintenance and Repairs Expense Depreciation Expense Insurance Expense Salaries and Wages Expense Utilities Expense Totals 11,100 306 400 622 711 722 726 59,900 1,800 3,200 2,000 29,900 1,600 732 59,900 57,300 38,500 21,400 59,900 35,900 21,400 Net Income 59,900 57,300 57,300 Your answer is partially correct. Prepare owner's equity statement. (List items that increase owner's equity first.) BLOSSOM COMPANY Owner's Equity Statement December 31, 2020 Owner's Capital, December 31 19700 Add Net Income / (Loss) 21400 Less Drawings 11100 Owner's Capital, January 1 31000 x Your answer is incorrect. Prepare a classified balance sheet. (List Current Assets in order of liquidity.) BLOSSOM COMPANY Balance Sheet Assets x x x x x x X X Liabilities and Owner's Equity x x x X x x x X X Your answer is incorrect. Prepare the closing entries. L. Blossom did not make any additional investments during the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit x X Dec. 31 X X X (To close revenue account) X Dec. 31 x x x x x x x (To close expense accounts) X Dec. 31 x x (To close net income / (loss)) x Dec. 31 (To close drawings) Post the closing entries and balance the accounts. (Post entries in the order of journal entries presented in the previous part.) Owner's Capital No. 301 x x x Owner's Drawings No. 306 x X Income Summary No. 350 X X x x Service Revenue No. 400 X X Maintenance and Repairs Expense No. 622 x x Depreciation Expense No. 711 X Insurance Expense No. 722 x X Salaries and Wages Expense No. 726 X x Utilities Expense No. 732 x X Your answer is incorrect. Prepare a post-closing trial balance. BLOSSOM COMPANY Post-Closing Trial Balance Debit Credit X x Didddddd x x x x x X X 59 Totals

Answer 1

BLOSSOM COMPANY Owner's Equity Statement For the Year Ended December 31, 2020 Owner's Capital, January 1 $ Add: Net Income/(Loss) 19,700 21,400 41,100 11,100 30,000 Less: Drawings Owner's Capital, December 31 $ BLOSSOM COMPANY Balance Sheet December 31, 2020 Assets $ 22,400 Current Assets Cash $ 8,800 Accounts receivable 10,600 Prepaid insurance 3,000 Total Current Assets Property, Plant and Equipment Equipment 23,800 Less: Accumulated Depreciation - Equipment 4,500 Total Assets Liabilities and Owner's Equity Current Liabilities Accounts payable $ 9,200 Salaries and wages payable 2,500 Total Current Liabilities Owner's Equity Owner's capital Total Liabilities and Owner's Equity 19,300 41,700 $ $ 11,700 30,000 41,700 $

Date Account titles and Explanation Debit Credit $ $ 59,900 Dec.31 Service Revenue Income summary (to close revenue account) $ 59,900 $ 38,500 Dec.31 Income summary Maintenance and Repairs Expense Depreciation expense Insurance expense Salaries and Wages Expense Utilities Expense (to close the expense account) $ $ $ $ $ 1,800 3,200 2,000 29,900 1,600 $ 21,400 Dec.31 Income summary Owner's Capital (to close Net income/(loss) $ 21,400 $ 11,100 Dec.31 Owner's Capital Owner's Drawings (to close drawings) $ 11,100

Owner's Capital Depreciation Expense No.711 3,200 $ 12/31 $ 3,200 12/31 $ 12/31 12/31 11,100 12/31 12/31 No.301 19,700 21,400 30,000 $ Owner's Drawings Insurance Expense No.306 11,100 No.722 2,000 12/31 11,100 12/31 12/31 $ 2,000 12/31 $ Income Summary Salaries and Wages Expense No.350 No.726 $ $ 59,900 12/31 $ 29,900 12/31 $ 29,900 12/31 12/31 38,500 12/31 21,400 $ Service Revenue Utilities Expense No.400 No.732 12/31 $ 59,900 12/31 $ 59,900 12/31 $ 1,600 12/31 $ 1,600 Maintenance and Repairs Expense No.622 12/31 $ 1,800 12/31 $ 1,800

Blossom Company Post Closing Trial Balance December 31, 2020 Debit Credit Cash $ 8,800 Accounts receivable 10,600 Prepaid Insurance 3,000 Equipment 23,800 Accumulated Depreciation- Equip. 4,500 Accounts payable 9,200 Salaries & Wages Payable 2,500 Owner's Capital 30,000 Totals $ 46,200 $ 46,200

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