edugen.wileyplus.com l Chegg.com Chegg Study | Guided Solutions and Study Help I

Question

edugen.wileyplus.com l Chegg.com Chegg Study | Guided Solutions and Study Help I Ch... WileyPLUuS These Items Are Taken From The Financial State Return to Blackboard Kimmel, Survey of Accounting, 1e with Job Order Costing Home Read, Study&Practice Assignment Gradebook ORION Assignment Open Assignment CALCULATOR PRINTER VERSION BACK NEXT ASSIGNMENT RESOURCES Exercise 1-10 Homework-Ch.1 Exercise 1-4 Blossom Company is a private camping ground near the Mount Miguel Recreation Area. It has compiled the following financial information as of December 31, 2017 Service revenue (from camping rees) 190,080 Dividends Sales revenue (from general store 36,000 Notes payable Accounts payable Cash Equipment $12,960 72,000 181,440 7,920 57,600 Retained earnings (1/1/2017) 7,200 Exercise 1.11 15,840 Expenses during 2017 12,240 Supplies Review Results by Study 164,160 Common stock Determine Blossom Company's net income for 2017 Blossom Company's net income for 2017 LINK TO TEXT VIDEO: SIMILAR EXERCISE Prepare a retained earnings statement for Blossom Company as of ended December 31, 2017. (List items that increase retained earnings first.) Blossom Company Retained Earnings Statement Version 4.24.9.3

Explanation / Answer

1. The Statement of Retained Earnings

Note 1 - Calculation of Net Income earned in 2017

Service revenue = $190,080

Sales revenue = $36,000

Total revenue = $190,080 + $360,000 = $226,080

Expenses incurred in 2017 = $181,440

Net Income earned in 2017 = $226,080 - $181,440 = $44,640

Therefore, Net Income in 2017 = $44,640

2. Balance Sheet

Blossom Company Retained Earnings Statement For the Year Ended December 31, 2017 Retained Earnings at January 01, 2017 $7,200 Add: Net Income earned in 2017 (Note 1) $44,640 $51,840 Less: Dividends declared and paid in 2017 $12,960 Retained Earnings at December 31, 2017 $38,880

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.