Comprehensive Problem 4 (Part B) Income Statement Chart of Accounts Labels and Amount Descriptions Instructions Note: You must complete Comprehensive Problem 4 (Part A) betore completing Comprehensive Problem 4 (Part B) Required: all of the transactions for the year ended December 31, Year 1, had been posted jincludling the transactions recorded in part (1) and al adjusting entries, the data that follows were taken trom the reoords of Equinox Products Inc. A. Propare a mumiple stop income statement for the year ended December 31, Year 1, concuding with earnings per share. In compuaing 2. After earnings per share, assume that ne average number of common shares outstanding was 100,000 and preferred dvidends were $100,00 Enter al amounts as posilive numbers EXCEPT in the Other income and expenses in that sectlon only, enter amounts that represent other expenses as negative numbers using a minus sign. (Round earnings per share to the nearest cent) B. Prepare a retained eamings statement for the year ended December 31, Year C Prepare a balance sheet in report form as of December 31, Year . Read the instructions above each financial statement carefully They may contain speofic instructions for completing the statoment Income Statement data: $150,000 3,700,000 30,000 30,000 100,000 4,500 Advertising expense Cost of merchandise sold Delivery expense Depreciation expense-office buidngs and equipment Depreciation expense-store buildings and equipment Divdand revenue Check My Work Income Statement data: $150,000 3,700,000 30,000 30,000 100,000 4,500 4,980 76,800 140,500 21,000 2,720 7,500 14,000 50,000 Advertising expense Cost of merchandise sold Delivery expense Depreciation expense-office buildings and equipment Depreciation expense-store buildings and equipment Dividend revenue Gain on sale of investment Income of Pinkberry Co. investment Income tax expense Interest expense Interest revenue Miscellaneous administrative expense Miscellaneous selling expense Office rent expense Office salaries expense 70,000 Office supplies expense Sales Sales commissions Sales salaries expense Store supples expense 10,000 5,254,000 185.000 385,000 21,000 Retained earnings and balance sheet data: Accounts payable Accounts receivable $194,300 545,000 1,580,000 4,126,00 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 20Y2 Cash Common stock, $20 par 8,450 260,130 500,000 246,000 (400,000 shares authorized; 100,000 shares issued, 94,600 outstanding) 2,000,000 Dividends: Cash dividends for common stock Cash dividends for preferred stock Goodwill Income tax payable interest receivable nvestment in Pinkberry Co stock (equity method) Investments-Dream Inc. bonds long term Merchandise inventory (December 31, Year 1) 155,120 100,000 500,000 44,000 1,125 1,009,300 90,000 at lower of cost (FIFO) or market Office buildings and equipment Paid-in capital from sale of treasury slock 78,000 4.320,000 13,000 Excess of issue price over par 44,000 1,125 1,009,300 90,000 Income tax payable Interest receivable nvestment in Pinkberry Co. stock (equity method) Investments-Dream Inc. bonds (ong term) Merchandise inventory (December 31, Year 1), at lower of cost (FIFO) or market Office buildings and equipment Paid-in capital from sale of treasury stock Excess of issue price over par 778,000 4,320,000 13,000 Common stock 886,800 -Preferred stock 150,000 Preferred 5% stock, S80 par 1,600,000 19,000 27,400 30,000 shares authorized; 20,000 shares issued) Premium on bonds payable Prepaid expenses Retained earmings, January 1, Year 1 Shore buildings and equipment Treasury stock (5,400 shares of common stock at cost of $33 per share) Unrealized gain (loss) on available-for-sale investments Valuation allowance for available-for-sale inwestments 9.319,725 12,560.000 178.200 6.500) (6,500)
