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 $ 150,000 Cost of merchandise sold 3,700,000 Delivery expense 30,000 Depreciation expense-office buildings a nd equipment 30,000 Depreciation expense-store buildings a nd equipment 100,000 Required: 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 Office rent expense 50,000 Office salaries expense 170,000 Office supplies expense 10,000 Sales 5,254,000 Sales commissions 185,000 Sales salaries expense 385,000 You are in Column Income Statement data:Store supplies expense 21,000 Retained earnings and balance sheet data: Accounts payable $ 194,300 Accounts receivable 545,000 Retained earnings and balance sheet data: 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 2024 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 Investments-Dream Inc. bonds (long term) 90,000 Merchandise inventory (December 31, 2016), at lower of cost (FIFO) or market 778,000 Retained earnings and balance sheet data: Office buildings and equipment 4,320,000 Paid-in capital from sale of treasury stock 13,000 Excess of issue price over par: -Common 886,800 -Preferred 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) 178,200 Unrealized gain (loss) on available-for-sale investments (6,500) You are in Column Retained earnings and balance sheet data:Valuation allowance for available-for-sale investments (6,500) none X Chart of Accounts CHART OF ACCOUNTS Equinox Products, Inc. General Ledger ASSETS REVENUE 110 Cash 410 Sales 121 Accounts Receivable 611 Dividend Revenue 122 Allowance for Doubtful Accounts 621 Interest Revenue 131 Merchandise Inventory 631 Income of Pinkberry Co. Investment 132 Interest Receivable 641 Gain on Sale of Investments 133 Prepaid Expenses EXPENSES 141 Investments-Solstice Corp. Stock 511 Cost of Merchandise Sold 142 Investment in Pinkberry Co. Stock 512 Bad Debt Expense 143 Investments-Dream Inc. Bonds 520 Sales Salaries Expense 144 Valuation Allowance for Available-for-Sale Investments 521 Sales Commissions 181 Store Buildings and Equipment 522 Office Salaries Expense 182 Accumulated Depreciation-Store Buildings and Equipment 531 Advertising Expense 183 Office Buildings and Equipment 532 Delivery Expense 184 Accumulated Depreciation-Office Buildings and Equipment 537 Store Supplies Expense 191 Goodwill 538 Office Supplies Expense 539 Office Rent Expense 541 Income Tax Expense LIABILITIES 211 Accounts Payable 221 Income Tax Payable 225 Cash Dividends Payable 251 Bonds Payable REVENUE 252 Discount on Bonds Payable 410 Sales 253 Premium on Bonds Payable 551 Depreciation Expense-Store Buildings and Equipment EQUITY 552 Depreciation Expense-Office Buildings and Equipment 311 Preferred Stock 591 Miscellaneous Selling Expense 312 Paid-in Capital in Excess of Par-Preferred Stock 592 Miscellaneous Administrative Expense 321 Common Stock 710 Interest Expense 322 Paid-in Capital in Excess of Par-Common Stock 731 Loss on Sale of Investments 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 none X Labels and Amount Descriptions Labels In CengageNOW, a Label is a text entry that does not have an amount associated with it. 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 Paid-in capital Add dividends Property, plant, and equipment Amount Descriptions In CengageNOW, an Amount Description is a text entry other than an Account that has an amount associated with it. Available-for-sale investments Decrease in retained earnings Excess of issue price over par Labels In CengageNOW, a Label is a text entry that does not have an amount associated with it. Gross profit Income before income tax Income from operations 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 Total liabilities and stockholders' equity Total long-term liabilities Total investments Total operating expenses Labels In CengageNOW, a Label is a text entry that does not have an amount associated with it. Total paid-in capital Total property, plant, and equipment Total selling expenses Total stockholders' equity none X Income Statement Shaded cells have feedback. 1. 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.) 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 1 2 3 4 5 Selling expenses: 6 7 8 9 10 11 12 13 14 Administrative expenses: 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 Earnings per common share Solution Equinox Products, Inc. Income Statement 1 2 3 4 5 Selling expenses: 6 7 8 9 10 11 12 13 14 Administrative expenses: 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 Earnings per common share X Retained Earnings Statement Shaded cells have feedback. 2. B. Prepare a retained earnings statement for the year ended December 31, 2016. 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. You will need to enter the word \"Less\" or \"Add\" as necessary. Question not attempted. Score: 0/66 Equinox Products, Inc. Retained Earnings Statement 1 2 3 4 5 6 7 Solution Equinox Products, Inc. Retained Earnings Statement 1 2 3 4 5 6 7 X Balance Sheet Shaded cells have feedback. 2. C. Prepare a balance sheet in report form as of December 31, 2016. You are not required to present the details of Preferred and Common Stock (i.e., number of shares authorized, issued and outstanding). 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. \"Less\" , \"Deduct\