Labels and Amount Descriptions Income Statement Note You must complete Cormarebensive Problem 4 (Part A ) belore completng Comprehenswe Problem 4 (Part B ) Required: 2. Anor alf of the varsactions for the year ended December 31,20y5, had been posand fincluding the bansactions recorded in part (1) and all adfucting enatiesi, the data that follows were takon from the reconds of Equinox Products mic: a Prepare a mutbole step income stisiment for the year ended December 31,20 rs, conctuding with eamings per share in computing eamings per share, assume that the average number of common shares outsanding was 100,000 and prefumed dividends were 5100,000 Be sure to complete the stabement heading. Refor to the account names in the instructions and the lusts of t. abels and Amount Descripitons for the exact wording of hext entgies. Less" or "Add wif actomatically appear if at is required. Enker amounes as positive numbers unless the amount is a calcutason thatresults in a negabve amount. For example: Net loss should be negatwe. Expenses should be posive. (Round earnings per shyre to the nearest cent.) Labels and Amount Descriptions Income Statement \begin{tabular}{|c|c|} \hline Instructions & \\ \hline Preferred \$1 stock, \$80 par & \\ \hline ( 30,000 shares authorized; 20,000 shares issued) & 1,600,000 \\ \hline Premium on bonds payable & 19,000 \\ \hline Prepaid expenses & 27,400 \\ \hline Retained earnings, January 1,20Y5 & 9,319,725 \\ \hline Store buildings and equipment & 12,560,000 \\ \hline Treasury stock & \\ \hline ( 5,400 shares of common stock at cost of $33 per share) & 178,200 \\ \hline Unrealized gain (loss) on available-for-sale investments & (6,500) \\ \hline Valuation allowance for available-for-sale investments & (6,500) \\ \hline \end{tabular} Instructions Income Statement data: \begin{tabular}{lr} \hline Adverfising 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 bulildings 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 \end{tabular} Instructions b. Prepare a retained earnings statement for the year ended December 31,20Y5. Be sure to complewe the stabement heading. Refer to the account names in the instructions and the Asts of Labels and Amount Descriptions for the exact wording of text ontries. If a net loss is incurred or there is a decrease in owner's equity, enber that amount as a negative number using a minus sign. c. Prepare a balance sheet in report form as of December 31, 20rs. Be sure to complete the statement heading. Reler to the account names in the instructions and the lists of Labels and Amount Descripdons for the exact wording of text entries. Less" or "Add wil automatcally appear if if is required. For those boxes in which you must enser subtractrve or negative numbers use a minus sign Recalf that curreat assets are fo be reporked in order of tiqudity Avalable for-sale investments are considered to be move tiquid than accounts receivable. Report fwed assebs afid paid-in capitat accouns in account number order. Omit the descripdon of bonds and stocks (ice, percentage rabes, due date, number of shares, etc) Income Statement data: Instructions Labels and Amount Desoriptions Income Statement Instructions \begin{tabular}{lr} 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 1,20Y5 & 9,319,725 \\ Store buildings and equipment & 12,560,000 \\ Treasury stock & 178,200 \\ (5,400 shares of common stock at cost of \$33 per share) \end{tabular} Instructions Labels and Amount Descriptions Income Statement Instructions Miscellaneous administrative expense Miscellaneous selling expense Office rent expense Oftice salaries expense Oftice supplies expense Sales Sales commissions expense Sales salaries expense Store supplies expense 7,500 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 $194,300