Answered step by step
Verified Expert Solution
Question
1 Approved Answer
BLOSSOM's balance sheet at December 31, 2020, is as follows. Other information about BLOSSOM is as follows. Salary expense, all paid with cash during 2021
BLOSSOM's balance sheet at December 31, 2020, is as follows.
Other information about BLOSSOM is as follows.
Salary expense, all paid with cash during 2021 | $700 | |
Sales, all for cash | 2,990 | |
Purchases, all for cash | 2,020 | |
Inventory at 12/31/21 | 1,790 |
The property originally cost $2,100 and is depreciated on a straight-line basis over 25 years with no residual value. Interest on the note payable is 10% annually and is paid in cash on 12/31 of each year. Dividends declared and paid are $190 in 2021.
Prepare an income statement for 2021. (Round answers to 1 decimal place)
BLOSSOM's balance sheet at December 31, 2020, is as follows. BLOSSOM, INC. BALANCE SHEET AS OF DECEMBER 31, 2020 Assets Liabilities Cash $440 $1.000 Inventory 1.800 345 Notes payable Pension liability Total liabilities Stockholders' equity Total current assets 2.240 1,345 2.100 Plant and equipment Accumulated depreciation (252) Common stock 2.000 1.848 Retained earnings 987 Total assets $4.088 Accumulated other comprehensive income (244) Total stockholders' equity 2,743 Total liabilities and stockholders' equity $4,088 Additional information concerning BLOSSOM's defined benefit pension plan is as follows. Projected benefit obligation at 12/31/20 $818.3 473.3 150 Plan assets (fair value) at 12/31/20 Unamortized past service cost at 12/31/20 Amortization of past service cost during 2021 Service cost for 2021 15 40 Discount rate 10 % Expected rate of return on plan assets in 2021 12 % Actual return on plan assets in 2021 11.0 Contributions to pension fund in 2021 63 Benefits paid during 2021 44 Expected remaining service life of employees 15 Average period to vesting of prior service costs 10 Unamortized net loss due to changes in actuarial assumptions and deferred net losses on plan assets at 12/31/20 94Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started