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.