Note: You must complete Comprehensive Problem 4 (Part A) before completing Comprehensive Problem 4 (Part B). Required: 2. After all of the transactions for the year ended December 31, Year 1, 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, Year 1, 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, Year 1.* C. Prepare a balance sheet in report form as of December 31, Year 1.* * Read the instructions above each financial statement carefully. They may contain specific instructions for completing the statement. Income Statement data: $150,000 3,700,000 Advertising expense Cost of merchandise sold Delivery expense Depreciation expense-office buildings and equipment Depreciation expense-store buildings and equipment 30,000 30,000 100,000 Dividend revenue 4,500 Gain on sale of investment 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 Office rent expense 50,000 Office salaries expense 170,000 Office supplies expense 10,000 5,254,000 Sales Sales commissions 185,000 Sales salaries expense 385,000 Store supplies expense 21,000 Retained earnings and balance sheet data: Accounts payable $194,300 Accounts receivable 545,000 1,580,000 Accumulated depreciation-office buildings and equipment 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 20Y2 500,000 Cash 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 155,120 100,000 Cash dividends for preferred stock 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, Year 1), 778,000 at lower of cost (FIFO) or market Office buildings and equipment Paid-in capital from sale of treasury stock 4,320,000 13,000 Excess of issue price over par: -Common stock 886,800 -Preferred stock 150,000 1,600,000 19,000 27,400 Preferred 5% stock, $80 par (30,000 shares authorized; 20,000 shares issued) Premium on bonds payable Prepaid expenses Retained earnings, January 1, Year 1 Store 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 9,319,725 12,560,000 178,200 (6,500) Valuation allowance for available-for-sale investments (6,500) 2 1. A. Prepare a multiple-step income statement for the year ended December 31, Year 1, 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. Refer to the Chart of Accounts for exact wording of account titles. . Refer to the Labels and Amount Descriptions for exact wording of text entries. Equinox Products Inc. Income Statement (Label) 1 Sales $5,254,000.00 2 Cost of merchandise sold 3,700,000.00 3 Gross profit $1,554,000.00 4 Selling expenses: 5 Selling expenses: 6 Sales salaries expense 7 Sales commission 8 Advertising expense Depreciation expense 9 10 Delivery expense 11 Store supplies 12 Miscellaneous selling expense 13 Administrative expenses: 14 Office salaries 15 Office rent 16 Depreciation 17 Office supplies 18 Miscellaneous administrative expense 19 Total operating expense 20 Income from operation 21 Other revenues and expense: Dividend revenue 23 Interest revenue 4 24 Income from Company P 6 25 Gain on sale of investment 2 C Prepare a balance sheet in report form as of December 31, Year. You are not required to present the details of Proformed and Common Stock i.e., number of shares authorized, issued and outstanding, - Refer to the Chart of Accounts for exact wording or accountines. . Refer to the Labels and Amount Deschlotions for exact wording of text entries. Yess", "Dacht", "Add" and colors will appear automatically Available for sale investments should be reported as a single asset on the balance sheet, regardless of how many accowite exist in the lediger les such assets. Recall thar current assets are to be reported in order of Moulohty. Available for sale investments are considered to be more quid than accounts recevable. . Report fixed assets and si-n capital accounts in account-umber order . Omit the description of bonds and stocks (i.e., percentage rates, due date, number of shares, etc.) Entor al amounts as pasive numbers, with an exception: If an unrealized loss has occurred, it must be reported as a negative amount on the balance sheet Equinox Products Inc. Balance Sheet (Label> 2 Assets 2 Labell 3 1 5 2 8 9 20 -2 (Labell 13 14 3 (Label is 12 La 20 (Label 25 M Liabilities 15 Labell 24 27 21 29 (Label 50 5: 52 33 54 Stockholders' Equity (Label) Note: You must complete Comprehensive Problem 4 (Part A) before completing Comprehensive Problem 4 (Part B). Required: 2. After all of the transactions for the year ended December 31, Year 1, 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, Year 1, 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, Year 1.* C. Prepare a balance sheet in report form as of December 31, Year 1.* * Read the instructions above each financial statement carefully. They may contain specific instructions for completing the statement. Income Statement data: $150,000 3,700,000 Advertising expense Cost of merchandise sold Delivery expense Depreciation expense-office buildings and equipment Depreciation expense-store buildings and equipment 30,000 30,000 100,000 Dividend revenue 4,500 Gain on sale of investment 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 Office rent expense 50,000 Office salaries expense 170,000 Office supplies expense 10,000 5,254,000 Sales Sales commissions 185,000 Sales salaries expense 385,000 Store supplies expense 21,000 Retained earnings and balance sheet data: Accounts payable $194,300 Accounts receivable 545,000 1,580,000 Accumulated depreciation-office buildings and equipment 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 20Y2 500,000 Cash 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 155,120 100,000 Cash dividends for preferred stock 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, Year 1), 778,000 at lower of cost (FIFO) or market Office buildings and equipment Paid-in capital from sale of treasury stock 4,320,000 13,000 Excess of issue price over par: -Common stock 886,800 -Preferred stock 150,000 1,600,000 19,000 27,400 Preferred 5% stock, $80 par (30,000 shares authorized; 20,000 shares issued) Premium on bonds payable Prepaid expenses Retained earnings, January 1, Year 1 Store 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 9,319,725 12,560,000 178,200 (6,500) Valuation allowance for available-for-sale investments (6,500) 2 1. A. Prepare a multiple-step income statement for the year ended December 31, Year 1, 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. Refer to the Chart of Accounts for exact wording of account titles. . Refer to the Labels and Amount Descriptions for exact wording of text entries. Equinox Products Inc. Income Statement (Label) 1 Sales $5,254,000.00 2 Cost of merchandise sold 3,700,000.00 3 Gross profit $1,554,000.00 4 Selling expenses: 5 Selling expenses: 6 Sales salaries expense 7 Sales commission 8 Advertising expense Depreciation expense 9 10 Delivery expense 11 Store supplies 12 Miscellaneous selling expense 13 Administrative expenses: 14 Office salaries 15 Office rent 16 Depreciation 17 Office supplies 18 Miscellaneous administrative expense 19 Total operating expense 20 Income from operation 21 Other revenues and expense: Dividend revenue 23 Interest revenue 4 24 Income from Company P 6 25 Gain on sale of investment 2 C Prepare a balance sheet in report form as of December 31, Year. You are not required to present the details of Proformed and Common Stock i.e., number of shares authorized, issued and outstanding, - Refer to the Chart of Accounts for exact wording or accountines. . Refer to the Labels and Amount Deschlotions for exact wording of text entries. Yess", "Dacht", "Add" and colors will appear automatically Available for sale investments should be reported as a single asset on the balance sheet, regardless of how many accowite exist in the lediger les such assets. Recall thar current assets are to be reported in order of Moulohty. Available for sale investments are considered to be more quid than accounts recevable. . Report fixed assets and si-n capital accounts in account-umber order . Omit the description of bonds and stocks (i.e., percentage rates, due date, number of shares, etc.) Entor al amounts as pasive numbers, with an exception: If an unrealized loss has occurred, it must be reported as a negative amount on the balance sheet Equinox Products Inc. Balance Sheet (Label> 2 Assets 2 Labell 3 1 5 2 8 9 20 -2 (Labell 13 14 3 (Label is 12 La 20 (Label 25 M Liabilities 15 Labell 24 27 21 29 (Label 50 5: 52 33 54 Stockholders' Equity (Label)