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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

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

fter all of the transactions for the year ended December 31, 20Y5, 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.

Income statement data:

Advertising expense $150,000

Cost of merchandise sold 3,700,000

Delivery expense 30,000

Depreciation expenseoffice buildings and equipment 30,000

Depreciation expensestore buildings 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

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

Sales 5,254,000

Sales commissions expense 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

Accumulated depreciationoffice buildings and equipment 1,580,000

Accumulated depreciationstore buildings and equipment 4,126,000

Allowance for doubtful accounts 8,450

Available-for-sale investments (at cost) 260,130

Bonds payable, 5%, due in 10 years 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

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

Investment in Dream Inc. bonds (long term) 90,000

Merchandise inventory (December 31, 20Y5), at lower

of cost (FIFO) or market

778,000

Office buildings and equipment 4,320,000

Paid-in capital from sale of treasury stock 13,000

Excess of issue price over parcommon stock 886,800

Excess of issue price over parpreferred 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 (5,400 shares of common stock at cost of

$33 per share)

178,200

Unrealized gain (loss) on available-for-sale investments (6,500)

Valuation allowance for available-for-sale investments (6,500)

If required, only use the minus sign to indicate loss before income tax, net loss, or a deficit balance in retained

earnings.

Gross profit $

Total selling expenses $

Total administrative expenses $

Total operating expenses $

Income from operations $

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 $

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