Reference no: EM133151226

Question - An alphabetical list of Blossoms Company adjusted accounts at its fiscal year end, August 31, 2021, follows. All accounts have normal balances. Accounts payable $15,590 Notes payable $42,000 Accumulated depreciation-equipment 14,000 Prepaid insurance 575 Accumulated depreciation-furniture 17,500 R. Smistad, capital 65,750 Cash 22,020 R. Smistad, drawings 74,000 Cost of goods sold 271,900 Rent expense 24,600 Depreciation expense 7,070 Salaries expense 50,900 Equipment 35,000 Salaries payable 2,250 Furniture 42,000 Sales 468,000 Insurance expense 3,575 Sales returns and allowances 16,300 Interest expense 2,140 Supplies 950 Interest payable 615 Supplies expense 6,325 Merchandise inventory 70,950 Unearned revenue 2,600 Additional information: 1. Of the notes payable, $6,600 becomes due on February 17, 2022. The balance is due in 2023. 2. On July 18, 2021, R. Smistad invested $4,200 cash in the business. Prepare a multiple-step income statement. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Prepare a statement of owner's equity. Prepare a classified balance sheet. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Equipment and Furniture.) Calculate the gross profit margin and profit margin.