Required Prepare a Classified Balance sheet at the end of January. Blossom Co. uses a perpetual inventory

   Required

Prepare a Classified Balance sheet at the end of January.

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Blossom Co. uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledgers for Blossom are indicated in the working papers presented below. Also following are a series of transactions for Blossom Co. for the month of January. Credit sales terms are 2/10, 1/30. The cost of all merchandise sold was 60% of the sales price. Account Number 101 112 115 120 126 130 157 158 201 301 Cash GENERAL LEDGER Account Title Accounts Receivable Notes Receivable Inventory Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equip Accounts Payable Owner's Capital January 1 Opening Balance $32,000 11,200 36,000 15,000 1,000 1,500 6,000 1,400 26,000 75,300 Blossom Co. uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledgers for Blossom are indicated in the working papers presented below. Also following are a series of transactions for Blossom Co. for the month of January. Credit sales terms are 2/10, 1/30. The cost of all merchandise sold was 60% of the sales price. Account Number 101 112 115 120 126 130 157 158 201 301 Cash GENERAL LEDGER Account Title Accounts Receivable Notes Receivable Inventory Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equip Accounts Payable Owner's Capital January 1 Opening Balance $32,000 11,200 36,000 15,000 1,000 1,500 6,000 1,400 26,000 75,300

Answer rating: 100% (QA)

Blossom Co T Accounts Date Explanation 1Jan Beginning balance 31Jan Cash Rece... View the full answer