If required, only use the minus sign to indicate loss before income tax, net loss, or a deficit balance in retained earnings. 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 Iincluding the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc. Cash 246,000 Common stock, $20 par (400,000 shares authorized; 2,000,000 100,000 shares issued, 94,600 outstanding) Dividends: Cash dividends for common stock Cash dividends for preferred stock Goodwill Income tax payable Interest receivable Investment in Pinkberry co. stock (equity method) Investment in Dream Inc. bonds (long term) Merchandise inventory (December 31, 20Y5), at lower of cost (FIFO) or market Office bulldings and equipment Paid-in capital from sale of treasury stock Excess of issue price over par-common stock Excess of issue price over par-preferred stock Preferred $1 stock, $80 par (30,000 shares authorized; 155,120 100,000 500,000 44,000 1,125 1,009,300 90,000 778,000 4,320,000 13,000 886,800 150,000 1,600,000 Gmail Net other expenses and income Income tax Net income Earnings per common share (rounded to the nearest cent) Retained earnings, January 1, 20Y5 Total current assets Investment in Dream Inc, bonds Total property, plant, and equipment Total assets Total current liablities Net long-term liabilities Total liablities Total paid-in capital preferred $1 stock Total paid-in capital common stock, $20 par Total paid-in capital Retained earnings, December 31,20 Y 5 Total stockholders' equity 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 31,20y5, 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 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 31,20Y5. Save your calculations and enter the requested amounts below. c. Prepare a balance sheet in report form as of December 31, 20y5. 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. Miscellaneous selling expense Office rent expense Office salaries expense Office supplies expense Sales Sales commissions expense Sales salaries expense Store supplies expense 14,000 50,000 170,000 10,000 5,254,000 185,000 385,000 21,000 Retained earnings and balance sheet data: Accounts payable Accounts receivable Accumulated depreciation-office buildings and equipment Accumulated depreciation-store bulldings and equipment Allowance for doubtful accounts Available-for-sale investments (at cost) Bonds payable, 5%, due in 10 years $194,300545,0001,580,0004,126,0008,450260,130500,000
