50.1K

Verified Solution

Link Copied!

Blooming Flower Company was started in 2000 when it acquired $60,000 cash from the issue of common stock. The following data summarize the companys first three years operating activities. Assume that all transactions were cash transactions.

	2000			2001			2002
Purchases of inventory	$	50,000		$	60,000		$	85,000
Sales		68,000			85,000			130,000
Cost of goods sold		34,000			43,000			71,000
Selling and administrative expenses		29,000			35,000			42,000

Required

Prepare an income statement (use multistep format) and balance sheet for each fiscal year. (Hint: Record the transaction data for each accounting period in the accounting equation before preparing the statements for that year.)

Income Statements

Balance Sheets

Prepare an income statement for each fiscal year. (Hint: Record the transaction data for each accounting period in the accounting equation before preparing the statements for that year.)

	BLOOMING FLOWER COMPANY Income Statements For the Year Ended December 31 2000 2001 2002 0 0 0 Operating expenses $0 $0 $0

Balance Sheets

Prepare an balance sheet for each fiscal year. (Hint: Record the transaction data for each accounting period in the accounting equation before preparing the statements for that year.)

	BLOOMING FLOWER COMPANY Balance Sheets As of Year Ended December 31 2018 2019 2020 Assets Total assets $0 $0 $0 Liabilities Stockholders equity Total stockholders equity 0 0 0 Total liabilities and stockholders equity $0 $0 $0

Answer & Explanation Solved by verified expert

See Answer