Blooming Flower Company was started in Year 1 when it acquired $61,000 cash from the issue of common stock. The following data summarize the company’s first three years’ operating activities. Assume that all transactions were cash transactions.

	Year 1			Year 2			Year 3
Purchases of inventory	$	22,600		$	10,800		$	20,100
Sales		26,300			31,400			36,800
Cost of goods sold		12,900			16,900			19,800
Selling and administrative expenses		5,470			8,110			9,450

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.) 

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Income Statements Balance Sheets Prepare an income statement (use multistep format) for each fiscal year. (Hint: Record the transaction accounting period in the accounting equation before preparing the statements for that year.) Net sales Cost of goods sold Gross margin BLOOMING FLOWER COMPANY Income Statements For the Year Ended December 31 Year 1 Operating expenses Selling and administrative expenses Net income $ $ Year 2 26,300 $ 31,400 $ (12,900) (16,900) 13,400 14,500 (5,470) 7,930 Income Statements (8,110) 6,390 $ Year 3 36,800 (19,800) 17,000 (9,450) 7,550 Balance Sheets Income Statements Balance Sheets Prepare an income statement (use multistep format) for each fiscal year. (Hint: Record the transaction accounting period in the accounting equation before preparing the statements for that year.) Net sales Cost of goods sold Gross margin BLOOMING FLOWER COMPANY Income Statements For the Year Ended December 31 Year 1 Operating expenses Selling and administrative expenses Net income $ $ Year 2 26,300 $ 31,400 $ (12,900) (16,900) 13,400 14,500 (5,470) 7,930 Income Statements (8,110) 6,390 $ Year 3 36,800 (19,800) 17,000 (9,450) 7,550 Balance Sheets

Answer rating: 100% (QA)

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