Diem #4 Comprehensive Problem 4 (Part B) Instructions Chart of Accounts Labels and Amount Descriptions Income Statement Instructions Note: You must complete Comprehensive Problem 4 (Part A) before completing Comprehensive Problem 4 (Part B). Required: 1. After all of the transactions for the year ended December 31, 2016, 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. A. Prepare a multiple-step income statement for the year ended December 31, 2016, 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. Enter all amounts as positive numbers EXCEPT in the Other income and expenses. In that section 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 earnings statement for the year ended December 31, 2016." C. Prepare a balance sheet in report form as of December 31, 2016. Read the instructions above each financial statement carefully. They may contain specific instructions for completing the statement Income Statement data: Advertising expense Cost of merchandise sold $150,000 3,700,000 Check My Work 6 more Check My Work uses remaining. 00.000 All work saved. Comprehensive Problem 4 (Part B) Instructions Chart of Accounts Labels and Amount Descriptions Instructions 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 Dividend revenue 4,500 Gain on sale of investments 4,980 Income of Pinkberry Co. investment 76,800 Income tax expense 140,500 Interest expense 21,000 Interest revenue 2,720 Miscellaneous administrative expense 7,500 Miscellaneous selling expense 14,000 50,000 Office rent expense theck My Work 6 more Check My Work uses remaining. ment Score: 49.46% Income Statement All work saved. Comprehensive Problem #4 Comprehensive Problem 4 (Part B) Instructions Chart of Accounts Labels and Amount Descriptions Income Statement Instructions Office rent expense 50,000 Office salaries expense 170,000 Office supplies expense 10,000 Sales Sales commissions 5,254,000 185,000 Sales salaries expense 385,000 21,000 Store supplies expense 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 Available-for-sale investments (at cost) 260,130 Bonds payable, 5%, due 2024 500,000 040.000 Check My Work 6 more Check My Work uses remaining. All work saved. Comprehensive Problem #4 Comprehensive Problem 4 (Part B) Instructions Chart of Accounts Labels and Amount Descriptions Instructions Available-for-sale investments (at cost) Bonds payable, 5%, due 2024 Cash Income Statement 260,130 500,000 246,000 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 Investment in Pinkberry Co. stock (equity method). 1,009,300 90,000 Investments-Dream Inc. bonds (long term). Merchandise inventory (December 31, 2016), at lower of cost (FIFO) or market Office buildings and equipment Check My Work 6 more Check My Work uses remaining. 778,000 4,320,000 All work saved. Comprehensive Problem 4 (Part B) Instructions Chart of Accounts Labels and Amount Descriptions Income Statement Instructions Office buildings and equipment Paid-in capital from sale of treasury stock. Excess of issue price over par: -Common -Preferred 4,320,000 13,000 886,800 150,000 Preferred 5% 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, 2016 9,319,725 Store buildings and equipment 12,560,000 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 investments My Work 6 more Check My Work uses remaining. 178,200 (6,500) (6,500) > Instructions Chart of Accounts Labels and Amount Descriptions nstructions Chart of Accounts CHART OF ACCOUNTS Equinox Products, Inc. General Ledger Income Statement ASSETS 110 Cash 121 Accounts Receivable 122 Allowance for Doubtful Accounts 131 Merchandise Inventory 132 Interest Receivable 133 Prepaid Expenses 141 Investments-Solstice Corp. Stock 142 Investment in Pinkberry Co. Stock REVENUE 410 Sales 611 Dividend Revenue 621 Interest Revenue 631 Income of Pinkberry Co. Investment 641 Gain on Sale of Investments EXPENSES 511 Cost of Merchandise Sold My Work 6 more Check My Work uses remaining. All work saved. structions Chart of Accounts Labels and Amount Descriptions Income Statement ructions Chart of Accounts 143 Investments-Dream Inc. Bonds 144 Valuation Allowance for Available-for-Sale Investments 181 Store Buildings and Equipment 182 Accumulated Depreciation-Store Buildings and Equipment 183 Office Buildings and Equipment 184 Accumulated Depreciation-Office Buildings and Equipment 191 Goodwill LIABILITIES 211 Accounts Payable 221 Income Tax Payable 225 Cash Dividends Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable 512 Bad Debt Expense 520 Sales Salaries Expense 521 Sales Commissions 522 Office Salaries Expense 531 Advertising Expense 532 Delivery Expense 537 Store Supplies Expense. 538 Office Supplies Expense 539 Office Rent Expense 541 Income Tax Expense 551 Depreciation Expense-Store Buildings and Equipment 552 Depreciation Expense-Office Buildings and Equipment 591 Miscellaneous Selling Expense 592 Miscellaneous Administrative Expense 710 Interest Expense Work 6 more Check My Work uses remaining. All work saved. Jctions Chart of Accounts Labels and Amount Descriptions Income Statement ons art of Accounts 211 ACCOUNTS rayaure 221 Income Tax Payable 225 Cash Dividends Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable 541 Income Tax Ce 551 Depreciation Expense-Store Buildings and Equipment 552 Depreciation Expense-Office Buildings and Equipment 591 Miscellaneous Selling Expense 592 Miscellaneous Administrative Expense 710 Interest Expense 731 Loss on Sale of Investments EQUITY 311 Preferred Stock 312 Paid-in Capital in Excess of Par-Preferred Stock 321 Common Stock 322 Paid-in Capital in Excess of Par-Common Stock 331 Retained Earnings. 341 Cash Dividends 351 Treasury Stock 252 Daid in Conital from Sale of Troneun Stock rk 6 more Check My Work uses remaining. actions Chart of Accounts Labels and Amount Descriptions ons rt of Accounts 252 Discount on Bonds Payable 253 Premium on Bonds Payable EQUITY 311 Preferred Stock 312 Paid-in Capital in Excess of Par-Preferred Stock 321 Common Stock 322 Paid-in Capital in Excess of Par-Common Stock 331 Retained Earnings 341 Cash Dividends 351 Treasury Stock 352 Paid-in Capital from Sale of Treasury Stock 361 Unrealized Gain (Loss) on Available-for-Sale Investments k6 more Check My Work uses remaining. Income Statement 592 Miscellaneous Administrative Expense 710 Interest Expense 731 Loss on Sale of Investments uctions Chart of Accounts Labels and Amount Descriptions Labels Current assets Current liabilities December 31, 2016. For the Year Ended December 31, 2016 Intangible assets Investments Less dividends Long-term liabilities Operating expenses Other income and expenses -Work 6 more Check My Work uses remaining. ctions hart of Accounts Labels and Amount Descriptions Other income and expenses Paid-in capital Add dividends Property, plant, and equipment Amount Descriptions Available-for-sale investments Decrease in retained earnings Excess of issue price over par Gross profit- Income before income tax Income from operations Increase in retained earnings "Vork 6 more Check My Work uses remaining. tructions Chart of Accounts Labels and Amount Descriptions Income Statement ctions Chart of Accounts Labels and Amount Descriptions Increase in retained earnings Net income Net loss Retained earnings, January 1, 2016 Retained earnings, December 31, 2016 Total administrative expenses Total assets Total (before treasury stock) Total current assets Total current liabilities Total liabilities Cheek My Work uses remaining X tructions Chart of Accounts Labels and Amount Descriptions Income Statement actions Chart of Accounts Labels and Amount Descriptions Total Curren Total current liabilities Total liabilities Total liabilities and stockholders' equity Total long-term liabilities Total investments Total operating expenses Total paid-in capital Total property, plant, and equipment Total selling expenses Total stockholders' equity maining Instructions Balance Sheet Income Statement 1 Sales 2 Less dividends 3 Gross profit 4 expenses: $ Selling expenses: 6 Sales commissions 7 Sales salaries expense B Miscellaneous selling expense 9 Delivery expense Equinox Products, Inc. Income Statement For the Year Ended December 31, 2016 eck My Work 5 more Check My Work uses remaining. ent Score: 80.91% $185,000.00 385,000.00 14,000.00' 30,000.00 Score: 175/265 $5,313,000.00 3,700,000.00 $1,613,000.00 All work saved. Save and Exit Instructions Chart of Accounts Labels and Amount Descriptions Income Statement Instructions Balance Sheet Income Statement 30,000.00 9 Delivery expense 10 Advertising expense $150,000.00 11 Depreciation expense-store buildings and equipment 100,000.00 21,000.00 12 Store supplies expense $885,000.00 13 Total selling expenses 14 Administrative expenses: 15 Depreciation expense-office buildings and equipment $30,000.00 7,500.00 16 Miscellaneous administrative expense 50,000.00 17 Office rent expense $170,000.00 18 Office salaries expense 10,000.00' 19 Office supplies expense 267,500.00 20 Total administrative expenses Check My Work 5 more Check My Work uses remaining. Save an Instructions Chart of Accounts Labels and Amount Descriptions Income Statement Instructions Balance Sheet Income Statement we expenses 21 Total operating expenses 22 Income from operations 23 Other income and expenses: 24 Interest revenue 25 Interest expense 26 Other income and expenses 27 27 Income before income tax 28 income tax 29 Net income 30 Unrealized gain (loss) on available-for-sale investments 31 Net income 32 eck My Work 5 more Check My Work uses remaining. ent Score: 80.91% $30,000.00 (21,000.00) 469,500.00 140,500.00 329,000.00 I > 460,500.00 $460,500.00 All work saved. Save and Exi Instructions Chart of Accounts Labels and Amount Descriptions Income Statement Instructions Balance Sheet Income Statement 25 Interest expense 26 Other income and expenses 27 Income before income tax 18 income tax 29 Net income 30 Unrealized gain (loss) on available-for-sale investments 31 Net income 32 33 Earnings per common share Check My Work 5 more Check My Work uses remaining. ament Score: 80.91% I (21,000.00) 469,500.00 140,500.00 329,000.00 $33.00 Points: 38.90 All work saved. Save and Ex Instructions Chart of Accounts Labels and Amount Descriptions Income Statement Instructions Balance Sheet Income Statement 25 26 Retained Earnings Statement Retained Earnings Statement For the Year Ended December 31, 2016 27 1 Retained earnings, January 1, 2016 28 2 Net income 29 29 3 Add dividends: 30 4 Common stock 31 5 Preferred stock 32 6 Increase in retained earnings 33 7 Retained earnings, December 31, 2016 Check My Work 5 more Check My Work uses remaining. Shaded cells have feedback. $8,197,220.00 $32,900.00 $155,120.00 100,000.00 225,120.00 73,880.00 $827,110.00 Comprehensive Problem 4 (Part B) Instructions Chart of Accounts Labels and Amount Descriptions Instructions Balance Sheet Income Statement Equinox Products, Inc. Balance Sheet For the Year Ended December 31, 2016 1 Assets 2 Current assets: 3 Cash $282,850.00 4 Accounts receivable $545,000.00 5 Less: allowance for doubtful accounts 8,450.00 538,550.00 6 Store buildings and equipment $12,650,000.00 7 Less: accumulated depreciation-Store buildings and equipment 4,126,000.00 843,400.00 Merchandise inventory 778,000.00' 9 Interest receivable 1,200.00 27,400.00 10 Prepaid expenses eck My Work 5 more Check My Work uses remaining. Score: 229/382 Comprehensive Problem 4 (Part B). Instructions Chart of Accounts Labels and Amount Descriptions Instructions Balance Sheet interest receivable 10 Prepaid expenses 11 12 Investments: 13 Investment in Pinkberry Co. stock 14 valuation allowance for available-for-sale investment ST 15 Income Statement 1,200.00 27,400.00 $36,800.00 $450,000.00 1,176,000.00 1,626,000.00 Total current assets 16 Property, plant, and equipment: 17 Store buildings and equipment 18 Less: accumulated depreciation-Store buildings and equipment 19 Office buildings and equipment 20 20 21 Less: accumulated depreciation-Office buildings and equipment Total property, plant, and equipment 11 Intangible scente $12,560,000.00 4,126,000.00 8,434,000.00 $4,320,000.00 1,580,000.00" 2,740,000.00 Check My Work 5 more Check My Work uses remaining. 11,174,000.00 mprehensive Problem #4 Comprehensive Problem 4 (Part B) Instructions Chart of Accounts Labels and Amount Descriptions Income Statement Instructions Balance Sheet 20 Less: accumulated depreciation-Office buildings and equipment 1,580,000.00 2,740,000.00 21 Total property, plant, and equipment 22 Intangible assets: 23 Goodwill 24 Total assets 25 Liabilities 26 Current liabilities: 27 Accounts payable 28 Income tax payable 29 Total current liabilities 30 Long-term liabilities: 31 Bonds payable 32 Premium on bonds payable Chock My Work uses remaining. 11,174,000.00 700,000.00 $13,500,000.00 $194,300.00 44,000.00 $238,300.00 $500,000.00 $19,000.00' Comprehensive Problem #4 Comprehensive Problem 4 (Part B) Instructions Chart of Accounts Labels and Amount Descriptions Income Statement Instructions Balance Sheet 31 Bonds payable 32 Premium on bonds payable 55 34 Total liabilities 35 36 Investments: 37 Preferred stock 38 Excess of issue price over par 39 Preferred stock 40 Common stock 41 Excess of issue price over par 42 Common stock Stockholders' Equity 43 Paid-in capital from sale of treasury stock Check My Work 5 more Check My Work uses remaining. $1,600,000.00 150,000.00 $500,000.00 $19,000.00 $19,000.00 $757,300.00 $1,750,000.00 2,000,000.00 886,800.00 $2,886,800.00 13,000.00 Gmail Maps YouTube Comprehensive Problem #4 Translate Birth Chart BD2L Brightspace Homepage - Cent... Secure MOHELA L... Instructions Chart of Accounts Labels and Amount Descriptions Income Statement Instructions Balance Sheet 39 Preferred stock Common stock 41 Excess of issue price over par 42 Common stock 43 Paid-in capital from sale of treasury stock 44 Unrealized gain (loss) on available-for-sale investments 45 Retained earnings 46 Deduct: Treasury stock 47 Total stockholders' equity 43 Total liabilities and stockholders' equity $1,750,000.00 2,000,000.00 886,800.00 $2,886,800.00 13,000.00 4,649,800.00 $8,271,100.00 178,200.00) 12,742,700.00 $13,500,000.00 Points: 53.95/1