Blossom Management Services began business on January 1, 2020,with a capital investment of $111,700. The company manages condominiums for owners (Service Revenue) and rents space in its own office building (Rent Revenue). The trial balance and adjusted trial balance columns of the worksheet at the end of the first year are as follows.

Blossom Management ServicesWorksheetFor the Year Ended December 31, 2020
		Trial Balance				Adjusted Trial Balance
		Dr.		Cr.		Dr.		Cr.
Cash		13,500				13,500
Accounts Receivable		28,000				28,000
Prepaid Insurance		3,480				2,320
Land		69,700				69,700
Buildings		129,700				129,700
Equipment		58,600				58,600
Accounts Payable				13,000				13,000
Unearned Rent Revenue				6,100				1,600
Mortgage Payable				111,700				111,700
Owner?s Capital				154,980				154,980
Owner?s Drawings		22,000				22,000
Service Revenue				91,400				91,400
Rent Revenue				29,400				33,900
Salaries and Wages Expense		41,700				41,700
Advertising Expense		20,700				20,700
Utilities Expense		19,200				19,200
Totals		406,580		406,580
Insurance Expense						1,160
Depreciation Expense						6,400
Accumulated Depreciation?Buildings								3,100
Accumulated Depreciation?Equipment								3,300
Interest Expense						10,100
Interest Payable								10,100
Totals						423,080		423,080

Transcribed Image Text:

BLOSSOM MANAGEMENT SERVICES Worksheet Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Account Titles Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Cash 13,500 Accounts Receivable 28,000 Prepaid Insurance 3,480 Land 69,700 Buildings 129,700 Equipment 58,600 Accounts Payable 13,000 Unearned Rent Revenue 6,100 Mortgage Payable 111,700 Owner's Capital 154,980 Owner's Drawings 22,000 Service Revenue 91,400 BLOSSOM MANAGEMENT SERVICES Worksheet Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Account Titles Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Cash 13,500 Accounts Receivable 28,000 Prepaid Insurance 3,480 Land 69,700 Buildings 129,700 Equipment 58,600 Accounts Payable 13,000 Unearned Rent Revenue 6,100 Mortgage Payable 111,700 Owner's Capital 154,980 Owner's Drawings 22,000 Service Revenue 91,400

Answer rating: 100% (QA)

Balance sheet December 31 Assets Current assets Cash 13500 Acco... View the full answer