Comprehensive Problem 4 Part 2: Note: You must complete nart 1 before part 2. After all of the transactions for the year ended December 31, 2015, 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. 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 Gain on sale of investments 4,980 Income from Pinkberry Co. investment 76,800 Income tax expense 142,000 Interest expense 21,000 Interest revenue 8,720 Miscellaneous administrative expense 7,500 Miscellaneous selling expense 14,000 Office rent expense 50,000 Office salaries expense 170,000 10,000 Office supplies expense Check My Work All work saved. Previous Save and Exit Submit Assignment for Grading of term Print Item Sales Sales commissions expense Sales salaries expense Store supplies expense Retained earnings and balance sheet data: Accounts payable 5,254,000 185,000 385,000 21,000 $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 Available-for-sale Investments (at cost) 260,130 Bonds payable, 5%, due in 10 years 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 Check My Work Print Item v2.cengagenow.com Investment in Pinkberry Co. stock (equity methed) 1,009,300 Investment in Dream inc. bonds (long term) 90,000 Merchandise Inventory (December 31, 2015), 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 stock 886,800 Excess of issue price over par-preferred stock 150,000 Preferred $1 stock, $80 par (30,000 shares authorized; 1,600,000 20,000 shares issued) Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, January 1, 2015 9,319,725 Store buildings and equipment 12,560,000 Treasury stock (5,400 Shares of common stock at cost of 178,200 $33 per share) Unrealized gain (loss) on available-for-sale investments (6,500) Valuation allowance for available-for-sale Investments (6,500) D Conges On your own paper, in the working papers, or using a spreadsheet, prepare the following: a. Prepare a multiple-step income statement for the year ended December 31, 2015, concluding with eamings 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.) Seve your calculations and enter the requested amounts below. Print Item b. Prepare a retained earnings statement for the year ended December 31, 2015. Save your calculations and enter the requested amounts below. c. Prepare a balance sheet in report form as of December 31, 2015. Save your calculations and enter the requested amounts below. If required, only use the minus sign to indicate loss before income tax, net loss, or a deficit balance in retained earnings. Gross profit Total selling expenses Total administrative expenses Total operating expenses Income from operations 1,554,000 885,000 267,500 1,152,500 401,500 Net other expenses and Income Income tax Net income Earnings per common share (rounded to the nearest cent) Retained earnings, Jarary 1, 20YS 329,000 x 140,500 x 329,000 2.29 9,648,725 X Total current assets Investment in Dream Inc. bonds Total property, plant, and equipment Total assets Total current liabilities Net long-term liabilities Total liabilities Total paid-in capital preferred $1 stock Check My Work erm < Print Item Total current assets Investment in Dream Inc. bonds Total property, plant, and equipment Total assets Total current liabilities Net long-term liabilities Total liabilities Total paid-in capital preferred $1 stock Total paid-in capital common stock, $20 par Total paid-in capital Retained earnings, December 31, 2015 Total stockholders' equity Feedback Check My Work 8,271,100 X 14,616,005 X