Question

Prepare a balance sheet at May 31.

he Blossom Company opened for business on May 1, 2019. Its trial balance before adjustment on May 31 is as follows.

Blossom Company Trial Balance May 31, 2019
Account Number				Debit		Credit
101		Cash		$ 3,500
126		Supplies		2,050
130		Prepaid Insurance		1,800
140		Land		14,000
141		Buildings		60,500
149		Equipment		15,500
201		Accounts Payable				$ 11,500
208		Unearned Rent Revenue				3,200
275		Mortgage Payable				40,000
311		Common Stock				35,300
429		Rent Revenue				12,250
610		Advertising Expense		650
726		Salaries and Wages Expense		3,400
732		Utilities Expense		850
				$102,250		$102,250

Answer 1

Income Statement
Rent revenue	12,250
Expenses:
Advertising expense	-650
Salaries and wages expense	-3,400
Utilities expense	-850
Total expenses	-4,900
Net Income	$7,350

Statement of Retained Earnings
Beginning retained earnings	0
Net Income	7,350
	$7,350
Dividends	0
Retained earnings, Ending	$7,350

Balance Sheet
Assets	Amount	Liabilities + Stockholders Equity	Amount
Current Assets:		Current Liabilities:
Cash	3,500	Accounts payable	11,500
Supplies	2,050	Mortgage payable	40,000
Prepaid insurance	1,800	Unearned rent revenue	3,200
Total Current Assets	7,350	Total Current Liabilities	54,700
Plant,Assets :		Stockholders Equity:
Land	14,000	Common stock	35,300
Building	60,500	Retained earnings	7,350
Equipment	15,500	Total stockholders equity	42,650
Total Plant Assets	90,000
Total Assets	$97,350	Total Liabilities & Stockholders Equity	$97,350

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