Below is the trial balance of Boss Corporation on December 31, 2015. The account

Question

Below is the trial balance of Boss Corporation on December 31, 2015. The accounts are listed in alphabetical order and all accounts have normal balances. Account Title: Balance: Account Title: Balance: Accounts Payable 22 ,Interest Receivable 3 Accounts Receivable 65, Interest Revenue 6, Accum. Amort. - Patents 45, Land 250, Accum. Depl. - Oil Reserve 210, Long-Term Notes Payable 100, Accum. Depr. - Bldngs. 120, Loss on Plant Asset Disposal 15, Accum. Depr. - Equip. 90, Merchandise Inventory 44, Administrative Expenses 840, Miscellaneous Revenues 10, Allowance for Bad Debts 15, Notes Receivable (3 month) 90, APIC-Common 180, Oil Reserve 800, APIC-Preferred 50, Patent 120, APIC-Treasury 20, Preferred Stock 150, Buildings 640, Prepaid Insurance 26, Cash 99, Retained Earnings 158, Cash Dividends Declared 50, Salaries Payable 13, Common Stock 300, Sales 6,480, Common Stock Dividend Distributable 20, Sales Discounts 400, Cost of Goods Sold 2,110, Sales Returns & Allowances 800, Equipment 440, Selling Expenses 950, Dividends Payable 30, Short-Term Notes Payable 18, FICA Taxes Payable 20, Stock Dividends Declared 35, FUTA Taxes Payable 4, Supplies 18, Income Tax Expense 170, SUTA Taxes Payable 9, Interest Expense 30, Treasury Stock 80, Interest Payable 5. REQUIRED: Prepare the financial statements for the year for Boss Corporation--a multi-step income statement, a statement of retained earnings and a classified balance sheet.

Explanation / Answer

Boss Corporation Trial Balance Account description Balance Type Accounts Payable                22 CL Interest Receivable                  3 CA Accounts Receivable                65 CA Interest Revenue                  6 R Accm Amort Patents                45 A Land             250 A Accum Depl-Oil reserve             210 A Long term Notes payable             100 LL Accum Depr,_Bldgs             120 A Loss on Plant Asset disposal                15 R Accumulated depr -Equip                90 A Merchandise Inventory                44 CA Admin Expense             840 E Misc Revenue                10 R Allowance for Bad debts                15 CA Notes Receivable(3Months)                90 CA APIC-common             180 EQ Oil reserve             800 A APIC _pref                50 EQ Patent             120 A APIC Treasury                20 EQ Preferred stock             150 EQ Buildings             640 A Prepaid Insurance                26 CA Cash                99 CA Retained Earning             158 EQ Cash Div declared                50 res Salaries Payable                13 CL Common Stock             300 EQ Sales          6,480 R Common Stock Dividend distributable                20 EQ Sales Discount             400 R COGS          2,110 E Sales Returns & Allowances             800 R Equipment             440 A Selling Expenses             950 E Dividends Payable                30 CL Short term Notes payable                18 CL FICA Taxes payable                20 CL Stock dividends declared                35 res FUTA Tax payable                  4 CL Supplies                18 CA Income Tax expense             170 E SUTA Tax payable                  9 CL Interest Expense                30 E Treasury Stock                80 EQ Interest payable                  5 CL Boss Corporation Income Statement For the year 2015 Revenue Amt $ Sales          6,480 R Sales Discount           (400) R Sales Returns & Allowances           (800) R Net Sales          5,280 Other Income Interest Revenue                  6 Loss on Plant Asset disposal             (15) Misc Revenue                10 Net Other Income                  1 Total revenue          5,281 COGS          2,110 Gross Profit          3,171 Admin Expense             840 Selling Expenses             950 Income Before Interest & Tax          1,381 Interest Expense                30 Income before Tax          1,351 Income Tax expense             170 Net Income          1,181 Boss Corporation Balance Sheet Amt $ As on Dec 31. 2015. Assets Current Assets Merchandise Inventory                44 Allowance for Bad debts             (15) Notes Receivable(3Months)                90 Prepaid Insurance                26 Cash                99 Supplies                18 Interest Receivable                  3 Accounts Receivable                65 Total Current Assets             330 Non Current Assets Oil reserve             800 Patent             120 Buildings             640 Equipment             440 Land             250 Accm Amort Patents             (45) Accum Depl-Oil reserve           (210) Accum Depr,_Bldgs           (120) Accumulated depr -Equip             (90) Total Non Current Assets          1,785 Total Assets          2,115 Liabilities & Equities Current Liabilities Accounts Payable                22 Salaries Payable                13 Dividends Payable                30 Short term Notes payable                18 FICA Taxes payable                20 FUTA Tax payable                  4 SUTA Tax payable                  9 Interest payable                  5 Total Current Liabilities             121 Long term Liabilities Long term Notes payable             100 Total Long term Liabilities             100 Equities & Retained Earning Preferred stock             150 Retained Earning          1,254 Common Stock             300 Common Stock Dividend distributable                20 APIC-common             180 APIC _pref                50 APIC Treasury                20 Treasury Stock             (80) Total Equities          1,894 Total Liabilities & Equities          2,115 Boss Corporation Statement Of retained earning Amt $ Opening Balance in Retained Earning             158 Add: Net Profit From Income Statement          1,181 Less : Cash Dividend Declared             (50) Less : Stock Dividend Declared             (35) Closing Balance Retained Earning          1,254

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