Boyd Company has a line of credit with State Bank Boyd can borrow up to $520,000 at any time over the course of the Year 1 calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during Year 1. Boyd agreed to pay interest at an annual rate equal to 1 percent above the bank's prime rate. Funds are borrowed or repaid on the first day of each month Interest is payable in cash on the last day of the month. The interest rate is applied to the outstanding monthly balance. For example, Boyd pays 6 percent (5 percent + 1 percent) annual interest on $72,000 for the month of January Month January February March April through October November December Amount Borrowed or (Repaid) $ 72.000 52.000 (46.000) No change (36,000) (22.000) Prine Rate for the Month 5% 5 6 No change 6 5 Boyd earned $37,000 of cash revenue during Year 1 Required Prepare an income statement and balance sheet. (Do not round intermediate calculations.) BOYD COMPANY Income Statement For the Year Ended December 31. Year 1 Cash Expenses S 0 BOYD COMPANY Balance Sheet As of December 31, Year 1 Assets Cash Total Assets $ OA 0 Liabilities Stockholders' Equity Common stock Retained earnings Bonds payable Total Stockholders' Equity Total Liabilities and Stockholders' Equity 0 0