Accounting Cycle Review 5 a-e3 (Part Level Submission) On December 1, 2020, Blossom Distributing Company had the following account balances. Cash Accounts Receivable Inventory Supplies Equipment Debit $7,000 Accumulated Depreciation-Equipment 4,600 Accounts Payable 11,500 Salaries and Wages Payable 1,200 Owner's Capital 22,000 $46,300 Credit $2,200 4,500 1,000 38,600 $46,300 During December, the company completed the following summary transactions. Dec. 6 Paid $1,500 for salaries and wages due employees, of which $500 is for December and $1,000 is for November salaries and wages payable. 8 Received $1,800 cash from customers in payment of account (no discount allowed). 10 Sold merchandise for cash $6,500. The cost of the merchandise sold was $3,800. 13 Purchased merchandise on account from Boehm Co. $8,500, terms 2/10, n/30. 15 Purchased supplies for cash $1,600. 18 Sold merchandise on account $12,300, terms 3/10, n/30. The cost of the merchandise sold was $8,000. 20 Paid salaries and wages $1,500. 23 Paid Boehm Co. in full, less discount. 27 Received collections in full, less discounts, from customers billed on December 18. Prepare an income statement. BLOSSOM DISTRIBUTING COMPANY Income Statement For the Month Ended December 31, 2020 x XI sa $ x 0000 X x x X x X $ x DOI O Accounting Cycle Review 5 a-e3 (Part Level Submission) On December 1, 2020, Blossom Distributing Company had the following account balances. Cash Accounts Receivable Inventory Supplies Equipment Debit $7,000 Accumulated Depreciation-Equipment 4,600 Accounts Payable 11,500 Salaries and Wages Payable 1,200 Owner's Capital 22,000 $46,300 Credit $2,200 4,500 1,000 38,600 $46,300 During December, the company completed the following summary transactions. Dec. 6 Paid $1,500 for salaries and wages due employees, of which $500 is for December and $1,000 is for November salaries and wages payable. 8 Received $1,800 cash from customers in payment of account (no discount allowed). 10 Sold merchandise for cash $6,500. The cost of the merchandise sold was $3,800. 13 Purchased merchandise on account from Boehm Co. $8,500, terms 2/10, n/30. 15 Purchased supplies for cash $1,600. 18 Sold merchandise on account $12,300, terms 3/10, n/30. The cost of the merchandise sold was $8,000. 20 Paid salaries and wages $1,500. 23 Paid Boehm Co. in full, less discount. 27 Received collections in full, less discounts, from customers billed on December 18. Prepare an income statement. BLOSSOM DISTRIBUTING COMPANY Income Statement For the Month Ended December 31, 2020 x XI sa $ x 0000 X x x X x X $ x DOI O