Question 1 of 1 0.33/1 Cash $13,100 2,300 Inventory Prepaid insurance Equipment BLOSSOM CORPORATION Balance Sheet December 31, 2021 $31.000 Accounts payable 24,600 Interest payable 5,100 Bonds payable 42.900 Common stock Retained earnings $103,600 46,000 18,400 23,800 $103,600 During 2022, the following transactions occurred. Blossom uses a perpetual inventory system. 1. 2. 3. 4. 5. Blossom paid $2,300 interest on the bonds on January 1, 2022. Blossom purchased $241.800 of inventory on account Blossom sold for $448,300 cash inventory which cost $249.000. Blossom also collected $26,898 sales taxes. Blossom paid $231,700 on accounts payable. The prepaid insurance ($5,100) expired on July 31. On August 1, Blossom paid $12,000 for insurance coverage from August 1, 2022, through July 31, 2023. Blossom paid $22,100 sales taxes to the state, Paid other operating expenses. $91,500. Redeemed the bonds on December 31, 2022, by paying $44.160 plus $2,300 interest Issued $87,800 of 8% bonds on December 31, 2022 at 103. The bonds pay interest every June Decen 6. 7. 8. 9. 10. 7. 8. Blossom paid $22,100 sales taxes to the state. Paid other operating expenses $91,500 Redeemed the bonds on December 31, 2022, by paying $44.160 plus $2,300 interest. Issued $87,800 of 8% bonds on December 31, 2022, at 103. The bonds pay interest every June 30 and December 31. 9. 10. Adjustment data: 1. Recorded the insurance expired from item 6. The equipment was acquired on December 31, 2021, and will be depreciated on a straight-line basistover 5 years with a $3,000 salvage value 2 Prepare an adjusted trial balance at December 31, 2022. BLOSSOM CORPORATION Trial Balance 12/31/22 Debit Credit Cash Inventory Prepaid Insurance Equipment Accumulated Depreciation Equipment Accounts Payable TILLNET Premium on Bonds Payable Sales Taxes Payable Sales Revenue Bonds Payable Gain on Bond Redemption Sales Revenue Bonds Payable Gain on Bond Redemption Common Stock Retained Earnings Cost of Goods Sold Other Operating Expenses Insurance Expense Interest Expense Depreciation Expense