Part One: 

In 2021, Fran Lexa opened Fran’s Flowers, a small shop selling floral arrangements. On December 31, 2022, her accounting records show the following:

Requirement

Prepare an income statement for Fran’s Flowers, a merchandiser, for the year ended December 31, 2022.

Part two: 

Fran’s Flowers succeeded so well that Fran decided to manufacture her own brand of floral supplies: Floral Place Manufacturing. At the end of December 2023, her accounting records show the following:

Requirements

1. Calculate the cost of goods manufactured for Floral Place Manufacturing for the year ended December 31, 2023.

2. Prepare an income statement for Floral Place Manufacturing for the year ended December 31, 2023.

3. How does the format of the income statement for Floral Place Manufacturing differ from the income statement of Fran’s Flowers?

Part three: 

Show the ending inventories that would appear on these balance sheets:

1. Fran’s Flowers at December 31, 2022.

2. Floral Place Manufacturing at December 31, 2023.

Transcribed Image Text:

Sales revenue. Utilities for shop. Inventory on December 31, 2022. Inventory on January 1, 2022. Rent for shop............... Sales commissions. Purchases of merchandise.. $ 53,000 $ 1,000 $ 9,200 $ 12,600 $ 4,400 $ 4,100 $ 38,000