After all of the transactions for the year ended December 31, 20Y8 had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follow were taken from the records of Equinox Products Inc.
a. Prepare a multiple-step income statement for the year ended December 31, 20Y8. Enter all amounts as positive numbers EXCEPT in the Other revenue and expense section. In that section only, enter amounts that represent other expenses as negative numbers using a minus sign.
b. Prepare a retained earnings statement for the year ended December 31, 20Y8.*
c. Prepare a balance sheet in report form as of December 31, 20Y8. *
*   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 goods sold   3,700,000
Delivery expense   30,000
Depreciation expense-office buildings and equipment   30,000
Depreciation expense-store buildings and equipment   100,000
Income tax expense   140,500
Interest expense   21,000
Interest revenue   30,000
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   5,313,000
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
Accumulated depreciation—office buildings and equipment   1,580,000
Accumulated depreciation—store buildings and equipment   4,126,000
Allowance for doubtful accounts   8,450
Bonds payable, 5%, due in 10 years   500,000
Cash   282,850
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   700,000
Income tax payable   44,000
Interest receivable   1,200
Inventory (December 31, 20Y8),  
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 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, 20Y8   8,197,220
Store buildings and equipment   12,560,000
Treasury stock  
(5,400 shares of common stock at cost of $33 per share)   178,200rn

Answer rating: 100% (QA)

Income Statement For the year ended December 31 20Y8 Sales 5313000 Cost of Goods Sold 3700000 Gross Profit 1613000 Expenses Selling expenses Delivery ... View the full answer