Blossom Company's balance sheet at December 31, 2021, is presented below. Blossom Company Balance Sheet December 31, 2021 Cash $13,270 Accounts payable $9,520 Accounts receivable 20,200 Common stock 22.000 Allowance for doubtful accounts (790) Retained earnings 10,770 Inventory 9,610 $42,290 $42,290 During January 2022, the following transactions occurred. Blossom uses the perpetual inventory method. Jan. 1 Blossom accepted a 4-month, 8% note from Betheny Company in payment of Betheny's $6,000 account. 3 Blossom wrote off as uncollectible the accounts of Walter Corporation ($500) and Drake Company ($300). 8 Blossom purchased $16,810 of inventory on account. 11 Blossom sold for $22,600 on account inventory that cost $16,040. 15 Blossom sold inventory that cost $740 to Jack Rice for $900. Rice charged this amount on his Visa First Bank card. The service fee charged Blossom by First Bank is 3%. 17 Blossom collected $24.500 from customers on account. 21 Blossom paid $17,450 on accounts payable. 24 Blossom received payment in full ($300) from Drake Company on the account written off on January 3. 27 Blossom purchased advertising supplies for $1,480 cash. 31 Blossom paid other operating expenses, $3,190. Adjustment data: 1. Interest is recorded for the month on the note from January 1. 2. Bad debts are expected to be 6% of the January 31, 2022, accounts receivable. 3. A count of advertising supplies on January 31, 2022, reveals that $550 remains unused. 4. 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.) (You may want to set up T-accounts to determine ending balances.) - Your wristally correct Prepare journal entries for the transactions listed above and adjusting entries. (include eritries for cost of goods sold using the perpetual inventory system (Round answers to decimal places, eg 1,250. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem) Date Account Titles and Explanation Debit Credit 6000 Accounts Receivable Migwance for Doubtful Accounts D O O Accounts Receivable Inventory 16010 Accounts Payable Accounts Receive Sales Reve 22600 To record sales revenues.] Cost of Good Solid 15040 (To record cost of goods sold) Service Change Expande Sales Revenue (To record sales revenues and service charges.) Cost of Goods Sold Imbory To record cost of goods sold) Accounts Receivable 24500 Accounts Payable Cash 1024 Account Receivable Allowance for Doubtful Accounts | 13 (To reverse allowance for doubtfuldebts.] Succes Jan 27 1480 1.80 (To record cash received from Drake Company. Other Operating Expenses son 21 (2) Bad Debes Expanse Alowance for Doublul Accounts 3) Suplies Eapenso 180 (4) Income Tax Expense Income Taxes Payable Prepare an income statement for the month ending January 31, 2022. (Round answers to O decimal places, eg. 1.250.) BLOSSOM COMPANY Income Statement For the Month Ending January 31, 2022 Sales Revenues 23500 Cost of Goods Sold (16780) Gross Profit 6720 Operating Expenses Service Charge Expense 27 i Other Operating Expenses 3190 i Bad Debts Expense 400 i Supplies Expense 930 i Income From Operations Net Income /(Loss) 12319 e Textbook and Media List of Accounts - Your answer is partially correct. Prepare a retained earnings statement for the month ending January 31, 2022. (Round answers to decimal places, eg. 1.250.) BLOSSOM COMPANY Retained Earnings Statement For the Month Ending January 31, 2022 e Textbook and Media List of Accounts X Your answer is incorrect. Prepare a classified balance sheet as of January 31, 2022. (List Current Assets in order of liquidity. Round answers to 0 decimal places, eg. 1,250.) BLOSSOM COMPANY Balance Sheet Assets Liabilities and Stockholders' Equity e Textbook and Media
