Blossom Corporation's balance sheet at December 31, 2021. is presented as follows. BLOSSOM CORPORATION Balance Sheet December 31, 2021 Cash $25,900 Accounts payable Accounts receivable 48,100 Common stock ($10 par) Allowance for doubtful accounts (1.700) Retained earnings Supplies 4,100 Land 36,300 Buildings 144,600 Accumulated depreciation-buildings (22.500) $234,800 $27,900 77,000 129,900 $234,800 During 2022, the following transactions occurred. 1. On January 1, 2022, Blossom issued 1.200 shares of $40 par, 7% preferred stock for $49.200. 2. On January 1, 2022, Blossom also issued 1,000 shares of the $10 par value common stock for $19,800. 3. Blossom performed services for $303,000 on account. 4. On April 1, 2022, Blossom collected fees of $34,000 in advance for services to be performed from April 1. 2022, to March 31, 2023. 5. Blossom collected $264,800 from customers on account. 6. Blossom bought $31,600 of supplies on account. 7. Blossom paid $34,600 on accounts payable, 8. Blossom reacquired 300 shares of its common stock on June 1, 2022, for $29 per share. 9. Pald other operating expenses of $191,200. 10. On December 31, 2022, Blossom declared the annual preferred stock dividend and a $1.20 per share dividend on the outstanding common stock, all payable on January 15, 2023. 11. An account receivable of $1,900 which originated in 2021 is written off as uncollectible. Adjustment data: 1 2 3 A count of supplies indicates that $6,500 of supplies remain unused at year-end. Recorded revenue from item 4 above. The allowance for doubtful accounts should have a balance of $3,900 at year end. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $9.000 The income tax rate is 30%. (Hint: Prepare the income statement up to income before income taxes and multiply by 30% to compute the amount) 5. No. Credit Debit $49,200 1. Accounts titles Cash Preferred stock Paid-in capital in excess of par-Preferred stock $48,000 $1,200 2. $19,800 Cash Common stock Paid-in capital in excess of par-Common stock $10,000 $9,800 3. $303,000 Accounts receivable Service revenue $303,000 4. $34,000 Cash Unearned service revenue $34,000 5. $264,800 Cash Accounts receivable $264,800 6. $31,600 Supplies Accounts payable $31,600 7. $34,600 Accounts payable Cash $34,600 8. $8,700 Treasury stock Cash $8,700 9. $191,200 Other operating expenses Cash $191,200 10. $13,440 Cash dividends Dividends payable $13,440 11. $1,900 Allowance for doubtful accounts Accounts receivable $1,900 Account Debit Credit 29200 1 supplies expense [4100+31600-6500) supplies 29200 25500 2 Unearned service revenue (34000*9/12) service revenue 25500 4100 3 Bad debt expense [3900] + [1900-1700] Allowance for doubtful accounts 4100 4500 4 Depreciation expense [144600-9600/30 Accumulated depreciation -buildings 4500 29850 29850 328500 5 Income tax expense Income taxes payable Income statement: Income statement Sales revenue (303,000+25500) Less: Expenses Depreciation expenses Bad debt expense Supplies expense Other Operating expenses Total Expenses Income before income tax Income tax expense (99500 x 30%) Net income 4500 4100 29200 191200 229000 99500 29850 69650 Prepare an adjusted trial balance at December 31, 2022. BLOSSOM CORPORATION Adjusted Trial Balance Debit Credit $ Totals Truth
