Question

Balance: 3,500 5,000 25 620 600 95 6,000 2,400 2,500 Below is the trial balance of Jupiter Corporation on December 31, 2019. The accounts are listed in alphabetical order and all accounts have normal balances. Account Title: Balance: Account Title: Accounts Payable 880 Interest Payable Accounts Receivable 1,130 Interest Receivable Accum. Amort. - Patents 450 Interest Revenue Accum. Depl. - Oil Reserve 700 Land Accum. Depr. - Bldngs. 2,100 Long-Term Notes Payable Accum. Depr.- Equip. 1,100 Loss on Plant Asset Disposal Administrative Expenses 1,890 Merchandise Inventory Allowance for Bad Debts Notes Receivable (3 month) APIC-Common 2,800 Oil Reserve APIC-Preferred 1,300 Patent APIC-Treasury 700 Preferred Stock Buildings 14,000 Prepaid Insurance Cash 2,730 Rent Revenue Cash Dividends Declared 800 Retained Earnings Common Stock 7,000 Salaries Payable Common Stock Dividend Distributable 300 Sales Cost of Goods Sold 6,730 Sales Discounts Equipment 5,500 Sales Retums & Allowances Dividends Payable 200 Selling Expenses FICA Taxes Payable Short-Term Notes Payable FIT Payable SIT Payable FUTA Taxes Payable Stock Dividends Declared Income Tax Expense Supplies Income Taxes Payable SUTA Taxes Payable Interest Expense Treasury Stock 440 350 8,580 60 16,400 440 790 2,140 250 190 220 370 75 660

Answer 1

Prepare Income statement as follows:

DSC Inc
Income Statement
For the Year Ended December 31, 2019
Particulars	Amount	Amount
Sales Revenue	$16,400
Deduct: Sales Returns and Allowances	$790
Deduct: Sales Discounts	$440
Net Sales Revenue		$15,170
Cost of Goods Sold		$6,730
Gross Profit		$8,440
Deduct: Operating Expenses
Selling Expenses	$2,140
Administrative Expenses	$1,890
Total Operating Expenses		$4,030
Operating income		$4,410
Other income / (Expenses)
Loss on Plant Asset Disposal	($25)
Rent Revenue	$350
Interest Revenue	$4
Interest Expense	($48)	$281
Income before income tax		$4,691
Income Tax Expense		$510
Net Income after tax		$4,181

Prepare statement of retained earnings as follows

DSC Inc
Statement of Retained Earnings
For the Year Ended December 31, 2019
Particulars	Amount	Amount
Beginning balance		$8,580
Add: Net income		$4,181
		$12,761
Deduct: Cash Dividends	$800
Stock Dividends	$220	$1,020
Ending balance		$11,741

Prepare classified balance sheet as follows

DSC Inc
Balance Sheet
December 31, 2019
Assets
Current Assets:
Cash		$2,730
Accounts Receivable	$1,130
Deduct: Allowance for Bad Debts	($95)	$1,035
Interest Receivable		$2
Merchandise Inventory		$620
Notes Receivable - Short term		$600
Prepaid Insurance		$440
Supplies		$370
Total Current Assets		$5,797
Property, Plant and Equipment:
Land		$3,500
Equipment	$5,500
Deduct: Accumulated Depreciation-Equipment	($1,100)	$4,400
Building	$14,000
Deduct: Accumulated Depreciation-Building	($2,100)	$11,900
Oil Reserve	$6,000
Deduct: Accumulated Depletion-Oil Reserve	($700)	$5,300
Intangible Assets:
Patents	$2,400
Deduct: Accumulated Amortization-Patents	($450)	$1,950
Total Assets		$32,847
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts Payable	$880
Dividends Payable	$200
FICA Taxes Payable	$80
FIT Payable	$330
FUTA Taxes Payable	$25
SIT Payable	$190
SUTA Taxes Payable	$75
Income Taxes Payable	$55
Interest Payable	$21
Salaries Payable	$60
Short-term Notes Payable	$250
Common Stock Dividends Distributable	$300
Total current liabilities		$2,466
Non-current Liabilities:
Long-term Notes Payable		$5,000
Total Liabilities		$7,466
Stockholders' Equity:
Common Stock	$7,000
Preferred Stock	$2,500
APIC - Common	$2,800
APIC - Preferred	$1,300
APIC - Treasury	$700
Retained Earnings	$11,741
Deduct: Treasury Stock	($660)
Total Stockholders' Equity		$25,381
Total Liabilities and Owners' Equity		$32,847