Comprehensive Problem 4 Part 2: Note: You must complete part 1 before part 2. After all of the transactions for the year ended December 31, 2018, had been posted [including the transactions recorded in part (1) and all adjusting entries), the data below were taken from the records of Equinox Products Inc. Unless otherwise stated, assume a December 31 balance after adjusting entries. 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 Office rent expense Office salaries expense Office supplies expense Sales 14,000 50,000 170,000 10,000 5,313,000 Sales commissions Sales salaries expense 185,000 385,000 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 Allowance for doubtful accounts 4,126,000 8,450 Bonds payable, 5%, due in 10 years 500,000 Cash 282,850 Common stock, $20 par (400,000 shares authorized; 85,000 shares issued, 94,600 outstanding), January 1, 2018 1,700,000 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, January 1, 2018 0 Paid-in capital in excess of par-common stock, January 1, 2018 Paid-in capital in excess of par-preferred stock, January 1, 2018 Preferred 5% stock, $80 par (30,000 shares authorized; 16,000 shares issued), January 1, 2018 Premium on bonds payable o Prepaid expenses 736,800 70,000 1,280,000 19,000 27,400 Retained earnings, January 1, 2018 Store buildings and equipment Treasury stock, January 1, 2018 8,197,220 12,560,000 0 a. Prepare a multiple-step income statement for the year ended December 31, 2018. Equinox Products Inc. Income Statement For the Year Ended December 31, 2018 Sales V Cost of goods sold Gross profit Operating expenses: Selling expenses: Administrative expenses: Total operating expenses Operating income Other revenue and expense: Income before income tax Income tax Net income b. Prepare a statement of stockholders' equity for the year ended December 31, 2018. Decreases in equity and purchase should be entered as negative amounts by using a minus sign. If your answer is zero, enter "0" Paid-In Capital Equinox Products Inc.. Statement of Stockholders' Equity For the Year Ended December 31, 2018 Paid-In Capital in Excess Preferred Stock of Par- Preferred Stock Common Stock in Excess of Par- Common Stock Paid-In Capital from Sale of Treasury Stock Retained Earnings Treasury Stock Total Check My Work 3 more Check My Work uses remaining Previous statement of stockholders' equity for the year ended December 31, 2018. Decreases in equity and purchase should be entered as negative amounts by using a minus sign. If your answer is zero, enter "0" Paid-In Capital Equinox Products Inc. Statement of Stockholders' Equity For the Year Ended December 31, 2018 Paid-In Capital in Excess Preferred Stock of Par- Preferred Stock Common Stock in Excess of Par- Common Stock Paid-In Capital from Sale of Treasury Stock Retained Treasury Earnings Stock Total c. Prepare a balance sheet in report form as of December 31, 2018. Equinox Products Inc. Balance Sheet c. Prepare a balance sheet in report form as of December 31, 2018. Equinox Products Inc. Balance Sheet December 31, 20Y8 Assets Current assets: Total current assets Property, plant, and equipment: Total property, plant, and equipment E Intangible assets: Total assets Current liabilities: < Total current liabilities Long-term liabilities: Total liabilities Paid-in capital: Liabilities Stockholders' Equity Total paid-in capital Total stockholders' equity Total liabilities and Stockholders' Equity