Reference no: EM132823121

Question - The following items are taken from the financial statements of Blossom Company for 2022:

Accounts payable $11,300

Accounts receivable 12,800

Accumulated depreciation-equipment 38,700

Advertising expense 20,800

Cash 13,800

Common stock 99,000

Depreciation expense 13,000

Dividends 15,900

Equipment 245,000

Insurance expense 3,800

Notes payable 90,000

Prepaid insurance 6,400

Rent expense 15,200

Retained earnings (beginning) 14,000

Salaries and wages expense 35,600

Salaries and wages payable 3,400

Service revenue 135,000

Supplies 3,200

Supplies expense 5,900

Required -

1. Calculate the net income.

2. Calculate the retained earnings balance that would appear on a balance sheet at December 31, 2022.