Selected transactions completed by Equinox Products Inc during the fiscal year ended December 31, 20Y5, were as follows Issued 15,000 shares of $20 par common stock at $30, receiving cash Issued 4,000 shares of $80 par preferred $1 stock at $100, receiving cash Issued $500,000 of 10 year, 5 bonds at 104, with interest payable semiannually Declared a quarterly dividend of $0 50 per share on common stock and $1 00 per share on preferred stock On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held and 20,000 shares of preferred stock were outstanding Paid the cash dividends declared in (d) Purchased 4 bonds issued by Solstice Corp as an available for sale investment for $300,150 Purchased 8,000 shares of treasury common stock at $33 per share Purchased 40,000 shares of Pinkberry Co s common stock directly from the founders for $24 per share Pinkberry has 125,000 shares issued and outstanding Declared a $1 00 quarterly cash dividend per share on preferred stock On the date of record, 20,000 shares of preferred stock had been issued Paid the cash dividends to the preferred stockholders Received $27,500 dividend from Pinkberry Co investment in (h) Purchased $90,000 of Dream Inc 10 year, 5 bonds, directly from the issuing company, at their face amount plus accrued interest of $375 The bonds are a held to maturity investment Sold, at $38 per share, 2,600 shares of treasury common stock purchased in (g) Received interest of $6,000 from the Solstice Corp investment in (f) Sold Solstice Corp bonds with a face value of $40,020 for $45,000, realizing a gain of $4,980 Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for 6 months The amortization is determined using the straight line method Accrued interest for 3 months on the Dream Inc bonds purchased in (l) Pinkberry Co reported total earnings of $240,000 Equinox Products recorded its share of Pinkberry Co net income using the equity method The Solstice Corp bonds have a fair value of $253,630 on December 31, 20Y5 Valuation Allowance for Available for Sale Investments had a balance of zero on January 1, 20Y5 Instructions Journalize the selected transactions Prepare an Adjusted Trial Balance following data were taken from the records of Equinox Products Inc Assume that these data include all of the transactions and adjusting entries for the year ended December 31, 20Y5, including the transactions and adjusting entries recorded in part (1) 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 Answer Check Figure Net income, $329,000 Prepare a retained earnings statement for the year ended December 31, 20Y5 Prepare a balance sheet in report form as of December 31, 20Y5

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 17, 2024

Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y5, were as follows: Issued 15,000 shares of $20 par common

Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y5, were as follows:
1. Issued 15,000 shares of $20 par common stock at $30, receiving cash.
2. Issued 4,000 shares of $80 par preferred $1 stock at $100, receiving cash.
3. Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually.
4. Declared a quarterly dividend of $0.50 per share on common stock and $1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held and 20,000 shares of preferred stock were outstanding.
5. Paid the cash dividends declared in (d).
6. Purchased 4% bonds issued by Solstice Corp. as an available-for-sale investment for $300,150.
7. Purchased 8,000 shares of treasury common stock at $33 per share.
8. Purchased 40,000 shares of Pinkberry Co.s common stock directly from the founders for $24 per share. Pinkberry has 125,000 shares issued and outstanding.
9. Declared a $1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued.
10. Paid the cash dividends to the preferred stockholders.
11. Received $27,500 dividend from Pinkberry Co. investment in (h).
12. Purchased $90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of $375. The bonds are a held-to-maturity investment.
13. Sold, at $38 per share, 2,600 shares of treasury common stock purchased in (g).
14. Received interest of $6,000 from the Solstice Corp. investment in (f).
15. Sold Solstice Corp. bonds with a face value of $40,020 for $45,000, realizing a gain of $4,980.
16. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for 6 months. The amortization is determined using the straight-line method.
17. Accrued interest for 3 months on the Dream Inc. bonds purchased in (l).
18. Pinkberry Co. reported total earnings of $240,000. Equinox Products recorded its share of Pinkberry Co. net income using the equity method.
19. The Solstice Corp. bonds have a fair value of $253,630 on December 31, 20Y5. Valuation Allowance for Available-for-Sale Investments had a balance of zero on January 1, 20Y5.
Instructions
- Journalize the selected transactions.
- Prepare an Adjusted Trial Balance following data were taken from the records of Equinox Products Inc. Assume that these data include all of the transactions and adjusting entries for the year ended December 31, 20Y5, including the transactions and adjusting entries recorded in part (1).
  1. 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.
    Answer
    Check Figure: Net income, $329,000
  2. Prepare a retained earnings statement for the year ended December 31, 20Y5.
  3. Prepare a balance sheet in report form as of December 31, 20Y5.