2.

After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc.

A.

Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were $100,000. (Round earnings per share to the nearest cent.)*

B.

Prepare a retained earnings statement for the year ended December 31, 2016.*

C.

Prepare a balance sheet in report form as of December 31, 2016. *

*	Read the instructions above each financial statement carefully. They may contain specific instructions for completing the statement.

Income Statement data:

Advertising expense

$ 150,000

Cost of merchandise sold

3,700,000

Delivery expense

30,000

Depreciation expense-office buildings and equipment

30,000

Depreciation expense-store buildings and equipment

100,000

Dividend revenue

4,500

Gain on sale of investments

4,980

Income from Pinkberry Co. investment

76,800

Income tax expense

140,500

Interest expense

21,000

Interest revenue

2,720

Miscellaneous administrative expense

7,500

Miscellaneous selling expense

14,000

Office rent expense

50,000

Office salaries expense

170,000

Office supplies expense

10,000

Sales

5,254,000

Sales commissions

185,000

Sales salaries expense

385,000

Store supplies expense

21,000

Retained earnings and balance sheet data:
Accounts payable	$ 194,300
Accounts receivable	545,000
Accumulated depreciationoffice buildings and equipment	1,580,000
Accumulated depreciationstore buildings and equipment	4,126,000
Allowance for doubtful accounts	8,450
Available-for-sale investments (at cost)	260,130
Bonds payable, 5%, due 2024	500,000
Cash	246,000
Common stock, $20 par
(400,000 shares authorized; 100,000 shares issued, 94,600 outstanding)	2,000,000
Dividends:
Cash dividends for common stock	155,120
Cash dividends for preferred stock	100,000
Goodwill	500,000
Income tax payable	44,000
Interest receivable	1,125
Investment in Pinkberry Co. stock (equity method)	1,009,300
Investment in Dream Inc. bonds (long term)	90,000
Merchandise inventory (December 31, 2016),
at lower of cost (FIFO) or market	778,000
Office buildings and equipment	4,320,000
Paid-in capital from sale of treasury stock	13,000
Excess of issue price over par:
-Common	886,800
-Preferred	150,000
Preferred 5% stock, $80 par
(30,000 shares authorized; 20,000 shares issued)	1,600,000
Premium on bonds payable	19,000
Prepaid expenses	27,400
Retained earnings, January 1, 2016	9,319,725
Store buildings and equipment	12,560,000
Treasury stock
(5,400 shares of common stock at cost of $33 per share)	178,200
Unrealized gain (loss) on available-for-sale investments	(6,500)
Valuation allowance for available-for-sale investments	(6,500)