< 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, 20YS, 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 Cost of goods sold $150,000 3,700,000 Delivery expense 30,000 Depreciation expense-office buildings and equipment 30,000 Depreciation expense-store buildings and equipment 100,000 Income tax expense 140,500 Interest expense 21,000 Interest revenue 30,000 Miscellaneous administrative expense 7,500 14,000 50,000 Miscellaneous selling expense Office rent expense Office salaries expense Office supplies expense Sales Sales commissions Sales salaries expense Store supplies expense Retained earnings and balance sheet data: 170,000 10,000 5,313,000 185,000 385,000 21,000 Retained earnings and balance sheet data: Accounts payable $194,300 Accounts receivable 545,000 Accumulated depreciation-office buildings and equipment 1,580,000 Accumulated depreciation-store buildings and equipment 4,126,000 Allowance for doubtful accounts 8,450 Bonds payable, 5%, due in 10 years 500,000 Cash 282,850 Common stock, $20 par (400,000 shares authorized; 85,000 shares issued, 94,600 outstanding), January 1, 20YS 1,700,000 Dividends: Cash dividends for common stock Cash dividends for preferred stock Goodwill Income tax payable Interest receivable 155,120 100,000 700,000 44,000 1,200 778,000 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, 20Y8 Paid-in capital in excess of par-common stock, January 1, 20Y8 Paid-in capital in excess of par-preferred stock, January 1, 20Y8 Preferred 5% stock, $80 par (30,000 shares authorized; 16,000 shares issued), January 1, 20Y8 Premium on bonds payable Prepaid expenses Retained earnings, January 1, 20Y8 Chavn L.:--- 4,320,000 0 736,800 70,000 1,280,000 19,000 27,400 8,197,220 533 33UTT Check My Work 2 more Check My Work uses remaining. Previous Paid-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, 2018 Premium on bonds payable Prepaid expenses Retained earnings, January 1, 2018 Store buildings and equipment Treasury stock, January 1, 20Y8 70,000 1,280,000 19,000 27,400 8,197,220 12,560,000 0 a. Prepare a multiple-step income statement for the year ended December 31, 20Y8. Sales Equinox Products Inc. Income Statement For the Year Ended December 31, 2018 5,313,000 Cost of goods sold Gross profit Operating expenses: Selling expenses: Sales salaries expense Sales commissions Advertising expense Depreciation expense-store buildings and equipment Delivery expense Store supplies expense Miscellaneous selling expense $ $ 3,700,000 1,613,000 Print Item Selling expenses: Sales salaries expense Sales commissions Advertising expense Depreciation expense-store buildings and equipment Delivery expense Store supplies expense Miscellaneous selling expense Administrative expenses: Office salaries expense Office rent expense Depreciation expense-office buildings and equipment Office supplies expense Miscellaneous administrative expense Total operating expenses Operating income Other revenue and expense: Interest revenue Interest expense Income before income tax Income tax Net income $$ $$ c. Prepare a balance sheet in report form as of December 31, 20Y8. Equinox Products Inc. Balance Sheet December 31, 20Y8 Current assets: Cash Accounts receivable Allowance for doubtful accounts Inventory Total current assets Property, plant, and equipment: Total property, plant, and equipment Intangible assets: $ $ $ $ Assets $$ $$ b. Prepare a statement of stockholders' equity for the year ended December 31, 2018. Decreases in equity and purchase should be entered as negative amounts by using a minus sign. If your answer is zero, enter "0". Paid-In Capital in Excess of Par Equinox Products Inc. Statement of Stockholders' Equity For the Year Ended December 31, 2018 Paid-In Capital Preferred in Excess of Par- Common Preferred Stock Stock Common Stock Stock Paid-In Capital from Sale of Treasury Stock Retained Earnings Treasury Stock Total $ $ $ $ $ $ $ $ $ $ $ Print Item Intangible assets: Total assets Current liabilities: Total current liabilities Long-term liabilities: Total liabilities Liabilities Stockholders' Equity Paid-in capital: $$ Tatal unid in aanitul $ $ $ $ $$ $$ $$ Print Item Total current liabilities Long-term liabilities: Total liabilities $$ $ $ $ $ S$ Stockholders' Equity Paid-in capital: $$ Total paid-in capital Total stockholders' equity Total liabilities and Stockholders' Equity $ $