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Blossom Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2020 an analysis of the accounts and discussions with company officials
Blossom Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2020 an analysis of the accounts and discussions with company officials revealed the following information:
Sales revenue | $1,219,000 | ||
Discontinued operations loss (net of tax) | 56,700 | ||
Selling expenses | 127,200 | ||
Cash | 60,100 | ||
Accounts receivable | 89,700 | ||
Common stock | 200,000 | ||
Cost of goods sold | 696,800 | ||
Accumulated depreciation-machinery | 183,600 | ||
Dividend revenue | 7,800 | ||
Unearned service revenue | 4,800 | ||
Interest payable | 1,200 | ||
Land | 374,000 | ||
Patents | 105,000 | ||
Retained earnings, January 1, 2020 | 288,210 | ||
Interest expense | 17,300 | ||
Administrative expenses | 171,200 | ||
Dividends declared | 27,400 | ||
Allowance for doubtful accounts | 5,500 | ||
Notes payable (maturity 7/1/23) | 186,000 | ||
Machinery | 459,000 | ||
Materials | 40,600 | ||
Accounts payable | 64,60 |
The amount of income taxes applicable to income was $64,290, excluding the tax effect of the discontinued operations loss which amounted to $24,300.
(b) Prepare a retained earnings statement. (List items that increase retained earnings first.) Blossom Corporation RETAINED EARNINGS STATEMENT $ $ $
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