Required 2. Prepare a schedule to determine the amount of cost of goods sold. b. Prepare a multistep income statement. c. Prepare a single-step income statement. Problem 3-25A Basic transactions for three accounting cycles: Perpetual system Blooming Flower Company was started in Year 1 when it acquired $60,000 cash from the issue of com- mon stock. The following data summarize the company's first 3 years' operating activities. Assume that all transactions were cash transactions. LO Year 1 Year 2 Year 3 Purchases of inventory Sales Cost of goods sold Selling and administrative expenses $50,000 68,000 34,000 29,000 $60,000 85,000 43,000 35,000 $ 85,000 130,000 71,000 42,000 126 Chapter 3 CHECK FIGURES Year 1 Net Income: $5,000 Year 2 Total Assets: $72,000 Required Record the transaction data for each accounting period in the accounting equation before preparing Prepare an income statement (use multistep format) and balance sheet for each fiscal year. (via the statements for that year.) word EC RE WP3 X M Fwd: Course in 21/SP C Solved in 21/SP @ Inom Signe S Lou epoint.com:w://personal/jaden_sweeney_my_simpson_edu/_layouts/15/doc2.aspx?sourcedoc-%7BC4FE7850-F154-42F - Saved Search (Optional References Review View Help Editing 14 A A B 1 U ' A A 0 PROBLEM 3-25A Blooming Flower Company Accounting Equation for Year 1 Assets Stockholders' Equity Mdse. Common Retained Event Cash + Inv. Stock + Earnings Acct. Title/RE 1. Issue Stock 2. Pur. Inv. 3. Sales 3. Cost of sales 4. Paid Exp. Totals Blooming Flower Company Accounting Equation for Year 2 Assets Stockholders' Equity Mdse. Common Retained Cash Inv. Stock + Earnings Event + Acct. Title/RE Beg. Bal 1. Pur. Inv. 2. Sales Paal aalaa 23 co stv MacBook Pro . " B A NE > li Blooming Flower Company Accounting Equation for Year 2 Assets Stockholders' Equity Mdse. Common Retained Cash + Inv. Stock + Earnings Event Acct. Title/RE Beg. Bal 1. Pur. Inv. 2. Sales 2. Cost of sales 3. Paid Exp. Totals Blooming Flower Company Accounting Equation for Year 3 Assets Stockholders' Equity Mdse. Common Retained Cash Inv. Stock + Earnings Event + Acct. Title/RE Beg. Bal 1. Pur. Inv. 2. Sales 2. Cost of sales 3. Pald Exp. Tatate 23 ety A MacBook Pro $ % 4 5 6 & 7 8 9 S Review ' ' B I I U I U A or Av & ... Blooming Flower Company Financial Statements Income Statements for the Year Ended December 31 Year 1 Year 2 Year 3 Net Sales Cost of Goods Sold Gross Margin Operating Expenses Selling and Admin. Expense Net Income Balance Sheets at December 31 Assets Cash Merchandise Inventory Total Assets Liabilities Stockholders' Equity Total Assets Liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liab. and Stkholders' Equity
