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, 2088, 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 Cost of goods sold Delivery expense Depreciation expense-office buildings and equipment Depreciation expense-store buildings and equipment Income tax expense Interest expense Interest revenue Miscellaneous administrative expense Miscellaneous selling expense office rent expense Office salaries expense Office supplies expense Sales Sales commissions Sales salaries expense Store supplies expense $150,000 3,700,000 30,000 30,000 100,000 140,500 21,000 30,000 7,500 14,000 50,000 170,000 10,000 5,313,000 185,000 385,000 21,000 $194,300 545,000 1,580,000 4,126,000 8,450 500,000 282,850 1,700,000 Retained earnings and balance sheet data: Accounts payable Accounts receivable Accumulated depreciation-office buildings and equipment Accumulated depreciation-store buildings and equipment Allowance for doubtful accounts Bonds payable, 5%, due in 10 years Cash Common stock, $20 par (400,000 shares authorized; 85,000 shares issued, 94,600 outstanding), January 1, 2048 Dividends: Cash dividends for common stock Cash dividends for preferred stock Goodwill Income tax payable Interest receivable Inventory (December 31, 20Y8), at lower of cost (FIFO) or market Office buildings and equipment Pald-in capital from sale of treasury stock, January 1, 2048 Paid-in capital in excess of par-common stock, January 1, 2048 Paid-in capital in excess of par--preferred stock, January 1, 20Y8 Preferred 5% stock, $80 par (30,000 shares authorized; 16,000 shares issued), January 1, 2018 Premium on bonds payable Prepaid expenses Retained earnings, January 1, 2048 Store buildings and equipment Treasury stock, January 1, 2048 155,120 100,000 700,000 44,000 1,200 778,000 4,320,000 mo 736,800 70,000 1,280,000 19,000 27,400 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 5,313,000 Cost of goods sold 3,700,000 1,613,000 Gross profit Operating expenses Selling expenses Sales salaries expense Sales commissions Advertising expense Depreciation expenses store buildings and equipment 355,000 185,000 150,000 100,000 Delivery expense 30,000 21,000 14,000 165,000 Store supplies expense Miscellaneous selling expense Administrative expenses Office salaries expense 170,000 50,000 30,000 Officerent expense Depreciation expense-office buildings and equipment Omnice supplies expense Miscellaneous administrative expense 10,000 7,500 267,500 1,152,500 Total operating expenses Operating Income Other revenue and expenses 460,500 Miscellaneous administrative expense 7,500 267,500 Total operating expenses 1,152,500 Operating income 460,500 Other revenue and expense: Interest revenue 30,000 Interest expense -21,000 9,000 Income before Income tax 469,500 Income tax 140,500 Net Income 329,000 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" Equinox Products Inc. Statement of stockholders' Equity For the Year Ended December 31, 2018 Pald-In Capital Pald-In Capital In Excess In Excess of Par of Par- Pald-In Capital Preferred Common from Sale of Preferred Stock Stock Common Stock Stock Treasury Stock Balances, January 1 PER . 140.00 329,000 Paldin Capital inte in time Statement of State fuity For the Year Ended December 2013 PIC I Pald Cape Care from Sale Comments Trowe Pistered Naland Preferred tace Yrawy Y Review for Financial Accounting Problem Prepare anche per formas Decanter 31, 2018 Equine Products Inc Balance Sheet December 31, 2018 A Current IIII Total current assets w Inn TH Review for Financial Accounting Prej Tutal Les Current listes Total currentes Long termes Nr tout Pain capital Total dat Od My Wor Review for Financial Accounting Prej Plen Labrities Current labas Total current Long term bote es Stockholders Poid-in capital Total Dadin Capital Total stockholders' equity Totes and Stockholders' Equity