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, 20Y5, 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.

Comprehensive Problem 4 Part 2: Note: You must complete part before part 2 After all of the transactions for the year ended December 31, 2045, 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 Office supplies expense 10,000 Sales 5,254,000 Sales commissions expense 185,000 Sales salaries expense 385,000 Store supplies expense 21,000 Retained earnings and balance sheet data Check My Work 2 more Check My Work uses remaining. Pre $194,300 545,000 1,580,000 4,126,000 8,450 260,130 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 Available-for-sale investments (at cost) Bonds payable, 5%, due in 10 years Cash Common stock, $20 par (400,000 shares authorized; 100,000 shares issued, 94,600 outstanding) Dividends: Cash dividends for common stock Cash dividends for preferred stock 500,000 246,000 2,000,000 155,120 100,000 Goodwill 500,000 44,000 1,125 1,009,300 90,000 Income tax payable Interest receivable Investment in Pinkberry Co. stock (equity method) Investment in Dream Inc. bonds (long term) Merchandise inventory (December 31, 2045), at lower of cost (FIFO) or market Office buildings and equipment Paid-in capital from sale of treasury stock 778,000 4,320,000 13,000 Excess of issue price over par-common stock 886,800 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, 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; 20,000 shares issued) 1,600,000 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 $33 per share) 178,200 Unrealized gain (loss) on available-for-sale investments (6,500) Valuation allowance for available-for-sale investments (6,500) 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, 2045, 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 earninas per share to the nearest cent.) Save vour calculations and enter the requested amounts below. Check My Work 2 more Check My Work uses remaining. Previous 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, 2045, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100, preferred dividends were $100,000. (Round earnings per share to the nearest cent.) Save your calculations and enter the requested amounts below. b. Prepare a retained earnings statement for the year ended December 31, 2045. Save your calculations and enter the requested amounts below. C. Prepare a balance sheet in report form as of December 31, 2045. Save your calculations and enter the requested amounts below. If required, only use the minus sign to indicate loss before income tax, loss, or a deficit balance in retained earnings. Gross profit 1,554,000 Total selling expenses 885,000 Total administrative expenses 267,500 Total operating expenses 885,000 X Income from operations 401,500 Net other expenses and income 329,000 X Income tax 140,500 X Net income 329,000 Earnings per common share (rounded to the nearest cent) 329,000 X Retained earnings, January 1, 2045 9,319,725 Total current assets $ 9,648,725 x Investment in Dream Inc. bonds 321,360 X Total property, plant, and equipment 11,174,000 Total assets 14,616,005 Total current liabilities 238,300 Net long-term liabilities 19,000 x Total liabilities 519,000 X Total paid-in capital preferred $1 stock 1,600,000 X Total administrative expenses $ 267,500 Total operating expenses 885,000 x 401,500 329,000 x Income from operations Net other expenses and income Income tax Net income 140,500 X 329,000 329,000 x 9,319,725 9,648,725 x Earnings per common share (rounded to the nearest cent) Retained earnings, January 1, 2045 Total current assets Investment in Dream Inc. bonds Total property, plant, and equipment Total assets Total current liabilities 321,360 x 11,174,000 14,616,005 238,300 Net long-term liabilities 19,000 x Total liabilities 519,000 x 1,600,000 x 150,000 X Total paid-in capital preferred $1 stock Total paid-in capital common stock, $20 par Total paid-in capital Retained earnings, December 31, 2045 Total stockholders' equity 13,000 X 9,327,365 x 13,858,705