Blossom Company was organized on April 1, 2021, by Trudy Crawford. Trudy is a good manager but a poor accountant. From the trial balance prepared by a part-time bookkeeper, Trudy prepared the following income statement for the quarter that ended March 31, 2022.

Blossom Company

Income Statement

For the Quarter Ended March 31, 2022Revenues

Rent revenue

$82,500Operating expenses

Advertising expense

$4,400Salaries and wages expense

26,000Utilities expense

1,500Depreciation expense

700Maintenance and repairs expense

2,900Total operating expenses

35,500Net income

$47,000

Trudy knew that something was wrong with the statement because net income had never exceeded $20,000 in any one quarter. Knowing that you are an experienced accountant, she asks you to review the income statement and other data.

You first look at the trial balance. In addition to the account balances reported in the income statement, the ledger contains these selected balances at March 31, 2022.

Supplies$4,600Prepaid Insurance7,500Notes Payable21,000

You then make inquiries and discover the following.

1.Rent revenue includes advanced rentals for summer-month occupancy, $21,500.2.There were $530 of supplies on hand at March 31.3.Prepaid insurance resulted from the payment of a 1-year policy on January 1, 2022.4.The mail on April 1, 2022, brought the following bills: advertising for week of March 24, $150; repairs made March 10, $1,050; and utilities $200.5.Wage expense totals $270 per day. At March 31, 3 days' wages have been incurred but not paid.6.The note payable is a 3-month, 8% note dated January 1, 2022.

(a)

Prepare a correct income statement for the quarter ended March 31, 2022.

Blossom Company

Income Statement

choose the accounting period

For the Quarter Ended March 31, 2022

For the Year Ended March 31, 2022

March 31, 2022

select an opening name for section one

Dividends

Expenses

Net Income / (Loss)

Retained Earnings, January 1, 2022

Retained Earnings, March 31, 2022

Revenues

Total Expenses

Total Revenues

enter an income statement item

$enter a dollar amount

select an opening name for section two

Dividends

Expenses

Net Income / (Loss)

Retained Earnings, January 1, 2022

Retained Earnings, March 31, 2022

Revenues

Total Expenses

Total Revenues

enter an income statement item

$enter an income statement item

enter a dollar amount

enter an income statement item

enter a dollar amount

enter an income statement item

enter a dollar amount

enter an income statement item

enter a dollar amount

enter an income statement item

enter a dollar amount

enter an income statement item

enter a dollar amount

enter an income statement item

enter a dollar amount

select a closing name for section two

Dividends

Expenses

Net Income / (Loss)

Retained Earnings, January 1, 2022

Retained Earnings, March 31, 2022

Revenues

Total Expenses

Total Revenues

enter a total amount for section two

select a closing name for this statement

Dividends

Expenses

Net Income / (Loss)

Retained Earnings, January 1, 2022

Retained Earnings, March 31, 2022

Revenues

Total Expenses

Total Revenues

$enter a total net income or loss amount