Question
Comprehensive Problem 4 Part 2 After all of the transactions for the year ended December 31, 20Y8, had been posted [including the transactions recorded in
Comprehensive Problem 4
Part 2
After all of the transactions for the year ended December 31, 20Y8, 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.
Income statement data:
Advertising expense$150,000
Cost of goods sold3,700,000
Delivery expense30,000
Depreciation expense?office buildings and equipment30,000
Depreciation expense?store buildings and equipment100,000
Income tax expense140,500
Interest expense21,000
Interest revenue30,000
Miscellaneous administrative expense7,500
Miscellaneous selling expense14,000
Office rent expense50,000
Office salaries expense170,000
Office supplies expense10,000
Sales5,313,000
Sales commissions185,000
Sales salaries expense385,000
Store supplies expense21,000
Retained earnings and balance sheet data:
Accounts payable$194,300
Accounts receivable545,000
Accumulated depreciation?office buildings and equipment1,580,000
Accumulated depreciation?store buildings and equipment4,126,000
Allowance for doubtful accounts8,450
Bonds payable, 5%, due in 10 years500,000
Cash282,850
Common stock, $20 par (400,000 shares authorized; 85,000 shares issued, 94,600 outstanding), January 1, 20Y81,700,000
Dividends:
Cash dividends for common stock155,120
Cash dividends for preferred stock100,000
Goodwill700,000
Income tax payable44,000I
nterest receivable1,200
Inventory (December 31, 20Y8), at lower of cost (FIFO) or market778,000
Office buildings and equipment4,320,000
Paid-in capital from sale of treasury stock, January 1, 20Y80
Paid-in capital in excess of par?common stock, January 1, 20Y8736,800
Paid-in capital in excess of par?preferred stock, January 1, 20Y870,000
Preferred 5% stock, $80 par (30,000 shares authorized;16,000 shares issued), January 1, 20Y81,280,000
Premium on bonds payable19,000
Prepaid expenses27,400
Retained earnings, January 1, 20Y88,197,220
Store buildings and equipment12,560,000
Treasury stock, January 1, 20Y80
a. Work multiple-step income statement for the year ended December 31, 20Y8.
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