Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows:

Record on journal page 10:

Jan.3Issued 15,000 shares of $20 par common stock at $30, receiving cash.Feb.15Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash.May1Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually.16Declared a 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. Journalize this transaction as a single entry.26Paid the cash dividends declared on May 16.Jun.1Purchased 7,500 shares of Solstice Corp. at $40 per share, plus a $150 brokerage commission. The investment is classified as an available-for-sale investment.8Purchased 8,000 shares of treasury common stock at $33 per share.22Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for $24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment.30Declared a $1.00 cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock were outstanding.Jul.11Paid the cash dividends declared on Jul. 11 to the preferred stockholders.Aug.27Received $27,500 dividend from Pinkberry Co. investment of Jun. 22.Record on journal page 11:

Oct.1Purchased $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 classified as a held-to-maturity long-term investment.7Sold, at $38 per share, 2,600 shares of treasury common stock purchased on Jun. 8.14Received a dividend of $0.60 per share from the Solstice Corp. investment on Jun. 1.29Sold 1,000 shares of Solstice Corp. at $45, including commission.31Recorded the payment of semiannual interest on the bonds issued on May 1 and the amortization of the premium for six months. The amortization is determined using the straight-line method.Dec.31Accrued interest for three months on the Dream Inc. bonds purchased on Oct. 1.31Pinkberry Co. recorded total earnings of $240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income.31The fair value for Solstice Corp. stock was $39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero.

• Prepare for the income statement, retained earnings, balance sheet.

This is data:

Income Statement data:

Advertising expense$ 150,000Cost of merchandise sold3,700,000Delivery expense30,000Depreciationexpense-officebuildingsandequipment30,000Depreciationexpense-storebuildingsandequipment100,000Dividend revenue4,500Gain on sale of investments4,980IncomefromPinkberry Co.investment76,800Income tax expense140,500Interest expense21,000Interest revenue2,720Miscellaneous administrative expense7,500Miscellaneous selling expense14,000Office rent expense50,000Office salaries expense170,000Office supplies expense10,000Sales5,254,000Sales commissions185,000Sales salaries expense385,000Store supplies expense21,000Retained earnings and balance sheet data:

Accounts payable$ 194,300Accounts receivable545,000Accumulated depreciationoffice buildings and equipment1,580,000Accumulated depreciationstore buildings and equipment4,126,000Allowance for doubtful accounts8,450Available-for-sale investments (at cost)260,130Bonds payable, 5%, due 2024500,000Cash246,000Common stock, $20 par(400,000sharesauthorized;100,000sharesissued,94,600outstanding)2,000,000Dividends:Cash dividends for common stock155,120Cash dividends for preferred stock100,000Goodwill500,000Income tax payable44,000Interest receivable1,125InvestmentinPinkberryCo.stock(equitymethod)1,009,300Investment in Dream Inc. bonds (long term)90,000Merchandise inventory (December 31, 2016),at lower of cost (FIFO) or market778,000Office buildings and equipment4,320,000Paid-in capital from sale of treasury stock13,000Excess of issue price over par:-Common886,800-Preferred150,000Preferred 5% stock, $80 par(30,000 shares authorized; 20,000 shares issued)1,600,000Premium on bonds payable19,000Prepaid expenses27,400Retained earnings, January 1, 20169,319,725Store buildings and equipment12,560,000Treasury stock(5,400sharesofcommonstockatcostof$33pershare)178,200Unrealizedgain(loss)onavailable-for-saleinvestments(6,500)Valuation allowance for available-for-sale investments(6,500)