Reference no: EM132644846

Question - These items are taken from the financial statements of Blossom Ltd. at December 31, 2021:

Accounts payable $19,050

Accounts receivable 18,780

Accumulated depreciation-buildings 48,600

Accumulated depreciation-equipment 19,470

Buildings 131,800

Cash 22,040

Common shares 138,000

Equipment 64,100

Income tax expense 5,000

Interest expense 4,000

Interest payable 2,100

Land 192,770

Long-term investments 26,970

Mortgage payable 102,000

Operating expenses 156,680

Prepaid insurance 1,400

Retained earnings, January 1 114,520

Service revenue 181,040

Supplies 1,240

Required - Calculate net income and the ending balance of retained earnings at December 31, 2021.