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Calculator Print Item Comprehensive Problem 4 Part 1: Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2018, were as

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Calculator Print Item Comprehensive Problem 4 Part 1: Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2018, were as follows: 1. Journalize the selected transactions, If no entry is required, select "No entry required from the dropdown and leave the amount boxes blank. If an amount box does not require an entry, leave it blank. a. Issued 15,000 shares of $20 par common stock at $30, recelving cash. Description Debit Cash 450,000 Credit Common Stock 300,000 150,000 Pald-In Capital in Excess of Par-Common Stock Credit b. Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash Description Debit Cash 400,000 Preferred Stock 320,000 80,000 Paid-In Capital in Excess of Par-Preferred Stock c. Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually Description Debit Credit Cash 520,000 Bonds Payable 500,000 Premium on Bonds Payable 20,000 d. Declared a quarterly dividend of $0.50 per share on common stock and $1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. Journalize the common stock and the preferred stock entries separately. Description Debit Credit Cash Dividends 50,000 Cash Dividends Payable 50,000 Common stock 20,000 Cash Dividends Cash Dividends Payable Preferred stock 20,000 e Paid the cash dividends declared in (d). Description Debit Cash Dividends Payable 70,000 Credit Cash 70,000 f. Purchased 8,000 shares of treasury common stock at $33 per share. Description Debit Credit Treasury Stock 264,000 Cash & 264,000 ate of red 20.000 shares of preferred stock had been issued. 9. Declared a $1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. Description Debit Credit Cash Dividends 20,000 Cash Dividends Payable 20,000 V h. Paid the cash dividends to the preferred stockholders. Description Debit Credit Cash Dividends Payable 20,000 Cash v 20,000 i. Sold, at $38 per share, 2,600 shares of treasury common stock purchased in (). Description Debit Credit Cash 98,800 85.800 Treasury Stock 13,000 Paid-In Capital from Sale of Treasury Stock 1. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method. Description Debit Interest Expense 11,500 Premium on Bonds Payable 1,000 Cash & 12,500 Comprehensive Problem 4 Part 2: Note: You must complete part 1 before part 2. After all of the transactions for the year ended December 31, 2048, had been posted (including the transactions recorded in part (1) and all adjusting entries), the data below were taken from the records of Equinox Products Inc. Unless otherwise stated, assume a December 31 balance after adjusting entries. $150,000 3,700,000 30,000 30,000 100,000 140,500 21,000 30,000 Income statement data: Advertising expense Cost of goods sold Delivery expense Depreciation expense-office buildings and equipment Depreciation expense-store buildings and equipment Income tax expense Interest expense Interest revenue Miscellaneous administrative expense Miscellaneous selling expense Office rent expense office salaries expense Office supplies expense Sales Sales commissions Sales salaries expense Store supplies expense 7,500 14,000 50,000 170,000 10,000 5,313,000 185,000 385,000 21,000 Retained earnings and balance sheet data: Accounts payable Accounts receivable Accumulated depreciation-office buildings and equipment Accumulated depreciation-store buildings and equipment Allowance for doubtful accounts Bonds payable, 5%, due in 10 years Cash Common stock, $20 par (400,000 shares authorized; 85,000 shares issued, 94,600 outstanding), January 1, 2048 Dividends: Cash dividends for common stock Cash dividends for preferred stock Goodwill $194,300 545,000 1,580,000 4,126,000 8,450 500,000 282,850 1,700,000 155,120 100,000 700,000 44,000 1,200 778,000 4,320,000 Income tax payable Interest receivable Inventory (December 31, 20Y8), at lower of cost (FIFO) or market Office buildings and equipment Paid-in capital from sale of treasury stock, January 1, 2018 Pald-in capital in excess of par-common stock, January 1, 2048 Pald-in capital in excess of par--preferred stock, January 1, 2018 Preferred 5% stock, $80 par (30,000 shares authorized; 16,000 shares issued), January 1, 2048 Premium on bonds payable Prepaid expenses Retained earnings, January 1, 2048 736,800 70,000 1,280,000 19,000 27,400 8,197,220 Calculator Print Item Prepaid expenses 27,400 Retained earnings, January 1, 2018 8,197,220 Store buildings and equipment 12,560,000 Treasury stock, January 1, 2048 a. Prepare a multiple-step income statement for the year ended December 31, 20Y8. Equinox Products Inc. Income Statement For the Year Ended December 31, 2048 Sales 5,313,000 Cost of goods sold 3,700,000 Gross profit 1,613,000 Operating expenses: Selling expenses: Sales salaries expense 385,000 Sales commissions 185,000 Advertising expense 150,000 Depreciation expense-store buildings and equipment 100,000 Delivery expense 30,000 Store supplies expense 21,000 Miscellaneous selling expense 14,000 885,000 Administrative expenses: Office salaries expense 170,000 Office rent expense 50,000 Sales commissions 185,000 150,000 Advertising expense Depreciation expense-store buildings and equipment 100,000 30,000 Delivery expense 21,000 Store supplies expense 14,000 885,000 Miscellaneous selling expense Administrative expenses: Office salaries expense 170,000 Office rent expense 50,000 Depreciation expense-office buildings and equipment 30,000 Office supplies expense 10,000 Miscellaneous administrative expense 7,500 267,500 1,152,500 Total operating expenses 460,500 Operating income Other revenue and expense: Interest revenue 30,000 21,000 Interest expense 9,000 Income before income tax 469,500 Income tax 140,500 Net Income 329,000 b. Prepare a statement of stockholders' equity for the year ended December 31, 2048. Decreases in equity and purchase should be entered a a minus sign. If your answer is zero, enter "0" b. Prepare a statement of stockholders' equity for the year ended December 31, 20Y8. Decreases in equity and purchase should be entered as negative amounts by using a minus sign. If your answer is zero, enter *0. Equinox Products Inc Statement of Stockholders' Equity For the Year Ended December 31, 2018 Pald-In Capital In Excess of Par- Preferred Stock $ 70,000 Pald-In Capital In Excess of Par- Common Stock Pald-In Capital from Sale of Treasury Stock Treasur Stock Preferred Stock Retained Earnings 8,197,220 Common Stock $ 1,700,000 Balances, January 1 $ 1,280,000 736,800 Issued common stock Issued preferred stock Net Income Cash dividends Sale of treasury stock Purchase of treasury stock $ 8,271,100 Balances, December 31 ckholders' equity for the year ended December 31, 2018. Decreases in equity and purchase should be entered as negative amounts by using is zero, enter"0" Paid-In Capital In Excess of Par- Preferred Stock Equinox Products Inc. Statement of Stockholders' Equity For the Year Ended December 31, 2018 Pald-In Capital in Excess of Par Pald-In Capital Common from Sale of Common Stock Stock Treasury Stock $ 1,700,000 $ 736,800 $ Retained Earnings 8,197,220 Treasury Stock Preferred Stock Total $ 1,280,000 $ 70,000 $ $ 11,984,020 $ 8,271,100 $ c. Prepare a balance sheet in report form as of December 31, 2018. Equinox Product Balance Sheet December 31, 2018 Assets Current assets: Cash 282,850 Accounts receivable 545,000 545,000 8,450 Allowance for doubtful accounts Accounts receivable, net 536,550 Inventory 778,000 Interest receivable 1,200 Prepaid expenses 27,400 1,626,000 Total current assets Property, plant, and equipment: Store buildings and equipment Accumulated depreciation Store buildings and equipment, net va Office buildings and equipment Accumulated depreciation 12,560,000 4,126,000 8,434,000 Office buildings and equipment, net value Total property, plant, and equipment Intangible assets: 11,174,000 11,174,000 Total property, plant, and equipment Intangible assets: Goodwill 700,000 Total assets 13,500,000 Liabilities Current liabilities: Accounts payable 194,300 Income tax payable 44,000 Total current liabilities 238,300 Long-term liabilities: Bonds payable 500,000 Premium on bonds payable 19,000 519,000 Total liabilities 757,300 Stockholders' Equity Paid-in capital: Preferred 5% stock Excess of issue price over par Pald-in capital, preferred Common stock Excess of issue price over par Paid-in capital, common stock Accounts payable 194,300 Income tax payable 44,000 238,300 Total current liabilities Long-term liabilities: Bonds payable $ $ 500,000 Premium on bonds payable 19,000 519,000 Total liabilities $$ 757,300 Stockholders' Equity Paid-in capital: Preferred 5% stock Excess of issue price over par Pald-in capital, preferred stock Common stock Excess of issue price over par Paid-in capital, common stock From sale of treasury stock Total paid-in capital Retained earnings 8,271,100 Treasury stock Total stockholders' equity Total liabilities and Stockholders' Equity

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