Blossom Company's balance sheet at December 31, 2021. is presented below. Blossom Company Balance Sheet December 31, 2021 Cash $13,820 Accounts payable $9,370 Accounts receivable 21.500 Common stock 18.900 Allowance for doubtful accounts (750) Retained earnings 16,030 Inventory 9.730 $44,300 $14.300 During January 2022, the following transactions occurred, Blossom uses the perpetuat inventory method Jan, 1 8 11 15 Blossom accepted a 1-month, 8% note trom Betheny Company in payment of Bethany's $2,400 account Blossom wrote off as uncollectible the accounts of Walter Corporation ($500) and Drake Company (5200). Blossom purchased $18.110 of inventory on account Blossom sold for $26,200 on account inventory that cost $18,650 Blossom sold inventory that cost $650 to Jack Rke for $1,000. Rice charged this amount on his Visa First Bank card. The service fee charged Blossom by First Bankis Blossom collected $21.900 from customers on account, 17 During January 2022, the following transactions occurred. Blossom uses the perpetual inventory method. Jan. 1 3 8 11 15 Blossom accepted a 4-month, 8% note from Betheny Company in payment of Betheny's $2,400 account. Blossom wrote off as uncollectible the accounts of Walter Corporation ($500) and Drake Company ($200). Blossom purchased $18,110 of inventory on account. Blossom sold for $26,200 on account inventory that cost $18,650. Blossom sold inventory that cost $650 to Jack Rice for $1.000. Rice charged this amount on his Visa First Bank card. The service fee charged Blossom by First Bank is 3% Blossom collected $21.900 from customers on account. Blossom paid $17,480 on accounts payable. Blossom received payment in full ($200) from Drake Company on the account written off on January 3. Blossom purchased advertising supplies for $1.280 cash. Blossom paid other operating expenses. $2.940. 17 21 24 27 31 Adjustment data: 1. 2. 3. Interest is recorded for the month on the note from January 1. Bad debts are expected to be 6% of the January 31, 2022, accounts receivable. A count of advertising supplies on January 31, 2022, reveals that $550 remains unused. The income tax rate is 30%. (Hint: Prepare the income statement up to Income before taxes and multiply by 30% to compute the amount round to whole dollars.) 4. (You may want to set up T-accounts to determine ending balances.) Debit Credit Date 2400 Jan 1 Account Titles and Explanation Notes Receivable Accounts Receivable 700 Jan. 3 Allowance for Doubtful Accounts Accounts Receivable 18110 Jan 8 Inventory Accounts Payable 26200 Jan. 11 Accounts Receivable Sales Revenue (To record sales revenues.) 18650 Jan 11 Cost of Goods Sold Inventory (To record cost of goods sold) 970 Jan 15 Cash 30 Service Charge Expense Sales Revenue (To record sales revenues and service charges.) Cash 1200 Other Operating Expenses 2940 Cash 2940 (1) Interest Receivable 16 Interest Revenue 16 (2) Bad Debts Expert 1112 Allowance for Doubtful Accounts 1112 (3) Supplies Experwe 820 Supplies 82d Income Tax Espen Income Tax Payable 664 e Textbook and Media List of Accounts Prepare an adjusted trial balance at January 31, 2022. (Round answers to O decimal places, eg. 1.250) BLOSSOM COMPANY Adjusted Trial Balance Debit Credit Cash 23070 Notes Receivable Interest Receivable Accounts Receivable Allowance for Doubtful Accounts Inventory Supplies Accounts Payable Income Taxes Payable Common Stock Retained Earnings Interest Revenue Allowance for Doubtful Accounts Inventory Supplies Accounts Payable Income Taxes Payable Common Stock Retained Earnings Interest Revenue Sales Revenue Cost of Goods Sold Service Charge Experise Other Operating Expenses Bad Debts Expense Supplies Experte Income Tax Expense Totals $ Prepare an income statement for the month ending January 31, 2022. (Round answers to decimal places, es: 1,250) BLOSSOM COMPANY Income Statement For the Month Erding January 31, 2022 Sales Revenues 27200 Cost of Goods Sold -19300 Gross Profit 7900 Operating Expenses Service Charge Expense 30 Other Operating Expenses 2940 Bad Debts Expense 1112 i Supplies Expense 550 Total Operating Expenses 4632 Income From Operations Sales Revenues Income Tax Expense Income Before Income Taxes Cost of Goods Sold -19300 i Gross Profit 7900 Operating Expenses 30 Service Charge Expense Other Operating Expenses Bad Debts Expense 2940 1112 Supplies Expense 550 Total Operating Expenses 4632 Income From Operations Sales Revenues Income Tax Expense Income Before Income Taxes Income Tax Expense 985 Net Income /(Loss) 2299 Your answer is partially correct. Prepare a retained earnings statement for the month ending January 31, 2022. (Round answers to decimal places, e.g. 1.250.) BLOSSOM COMPANY Retained Earnings Statement For the Month Ending January 31, 2022 Retained Earnings, January 1 Add Net Income /(Loss) Retained Earnings January 31 eTextbook and Media List of Accounts Prepare a classified balance sheet as of January 31, 2022. (List Current Assets in order of liquidity. Round answers to decimal places, e8. 1,250.) BLOSSOM COMPANY Balance Sheet January 31, 2022 Assets Current Assets Cash $ Notes Receivable Accounts Receivable $ Less : Allowance for Doubtful Accounts Interest Receivable Inventory Supplies Total Assets Liabilities and Stockholders' Equity Current Liabilities Supplies Total Assets Liabilities and Stockholders' Equity Current Liabilities Accounts Payable $ Income Taxes Payable Total Liabilities $ Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity e Textbook and Media List of Accounts