Instructions Labels and Amount Descriptions Income Statement Retained Earnings Statement Balance Sheet Note: You must complete Comprehensive Problem 4 (Part A} before completing Comprehensive Problem 4 (Part B). Required: 2 After all of the transactions for the year ended December 31, 2045, had been posted [including the transactions recorded in part (1) and all adjusting entries), the data that follows were taken from the records of Equinox Products in a Prepare a multiple-step income statement for the year ended December 31, 2045, 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. Be sure to complete the statement heading. Refer to the account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. Less" or Add will automatically appear it is required. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount For example: Net loss should be negative. Expenses should be positive (Round earnings per share to the nearest cent.) b. Prepare a retained eamings statement for the year ended December 31, 2045. Be sure to complete the statement heading Refer to the account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. Il a net loss is incurred or there is a decrease in owner's equity, enter that amount as a negative number using a minus sign c. Prepare a balance sheet in report form as of December 31, 2015. Be sure to complete the statement heading. Refer to the account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. Lessor-Add will automafically appear if it is required. For those boxes in which you must enter subtractive or negative numbers use a minus sign. Recall that current assets are to be reported in order of liquidity Available-for-sale investments are considered to be more liquid than accounts receivable Report faed assets and paid-in capital accounts in account-number order. Omit the description of bonds and stocks (ie. percentage rates, due date, number of shares, etc.) $150,000 3,700,000 30,000 30,000 100,000 4.980 76,800 142,000 21,000 Income Statement data: Advertising expense Cost of merchandise sold Delivery expense Depreciation expense-office buildings and equipment Depreciation expense-store buildings and equipment Gain on sale of investments Income from Pinkberry Co, investment 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 expense Sales salaries expense Store supplies expense 8.720 7.500 14.000 50,000 170,000 10.000 5,254,000 185,000 385,000 21.000 Retained earnings and balance sheet data: Accounts payable $194,300 Accounts receivable 545,000 Instructions Labels and Amount Descriptions Income Statement Retained Earnings Statement Balance Sheet y expense Office rent expense 50,000 Office salaries expense 170,000 Office supplies expense 10,000 Sales 5.254.000 Sales commissions expense 185,000 Sales salarios expense 385,000 Store supplies expense 21,000 $194,300 545.000 1,580,000 4,125,000 8.450 260,130 500,000 246,000 2,000,000 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 Available-for-sale investments (at cost) Bonds payabio, 5% due in 10 years Cash Common stock $20 par (400,000 shares authorized: 100,000 shares issued, 94,600 outstanding) Dividends: Cash dividends for common stock Cash dividends for preterred stock Goodwill Income tax payable Interest receivable Investment in Pinkberry Co stock (equity method) Investment in Dream Inc. bonds long term Merchandise inventory (December 31, 20Y5) at lower of cost (FIFO) or market Office buildings and equipment Paid-in capital from sale of treasury stock Excess of issue price over par-common stock Excess of issue price over par-preferred stock Preferred $1 stock. Se par (30,000 shares authorized: 20,000 shares issued) Premium on bonds payable Prepaid expenses Retained earnings, January 1, 2045 Store buildings and equipment Treasury stock (5,400 shares of common stock at cost of $33 per share) Unrealized gain (loss) on available for-sale investments Valuation allowance for available-for-sale investments 155,120 100.000 500.000 44,000 1.125 1.009.300 90,000 778,000 4,320,000 13,000 886.800 150.000 1.600.000 19.000 27.400 9,319,725 12.560.000 178,200 (6,500) (6.500) Instructions Labels and Amount Descriptions Income Statement Retained Earnings Statement Balance Sheet Labels Current assets Current liabilities December 31, 2045 Dividends For the Year Ended December 31, 2045 Intangible assets Investments Long-term liabilities Operating expenses Other revenue and expenses Paid-in capital Property, plant, and equipment Amount Descriptions Available-for-sale investments Bonds payable Common stock Decrease in retained earnings From sale of treasury stock Gross profit Investment in Pinkberry Co. Stock Investment in Dream Inc, bonds Income before income tax Income from operations Increase in retained earnings Merchandise inventory, at lower of cost (FIFO) or market Net income Net loss Preferred stock Paid in capital in excess of par-preferred stock Paid-in capital in excess of par-common stock Retained earnings Retained earnings, January 1, 2045 Retained earnings, December 31, 2045 Treasury common stock Total administrative expenses Total Total assets Total current assets Total current liabilities Total abilities Total liabilities and stockholders' equity Total long-term liabilities Instructions Labels and Amount Descriptions Income Statomont Retained Earnings Statement Balance Sheet Intangible assets Investments Long-term liabilities Operating expenses Other revenue and expenses Paid-in capital Property, plant, and equipment Amount Descriptions Available-for-sale investments Bonds payable Common stock Decrease in retained earnings From sale of treasury stock Gross profit Investment in Pinkberry Costock Investment in Dream Inc. bonds Income before income tax Income from operations Increase in retained earnings Merchandise inventory. at lower of cost (FIFO) or market Net income Net loss Preferred stock Paid in capital in excess of par preferred stock Paid in capital in excess of par-common stock Retained earnings Retained earnings, January 1, 2015 Retained earnings, December 31, 2045 Treasury common stock Total administrative expenses Total Total assets Total current assets Total current liabilities Total liabilities Total abilities and stockholders' equity Total long-term liabilities Total investments Total operating expenses Total paid-in capital Total property, plant, and equipment Total selling expenses Total stockholders Instructions Labels and Amount Descriptions Income Statement Income Statement a Prepare a multiple-step income statement for the year ended December 31, 2045, concluding with eamings per share. In computing samnings per Share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were $100,000. Be sure to complete the statement heading. Refer to the account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. tessor Adid will automatically appear if it is required. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. (Round earnings per share to the nearest cent.) $5,254,000.00 3,700,000.00 $1,554,000.00 $30,000.00 100,000.00 185,000.00 385,000.00 21,000.00 11 150,000.00 14,000.00 12 $885,000.00 Equinox Products Inc. Income Statement For the Year Ended December 31, 2045 1 Sales 1 Cost of merchandise sold Gross profit Operating expenses Selling expenses Delivery expense Depreciation expense-store buildings and equipment Merchandise inventory, at lower of cost (FIFO) or market Sales salaries expense Store supplies expense Advertising expense Miscellaneous selling expense 13 Administrative expenses * Depreciation expense-office buildings and equipment Office rent expense Office salaries expense Office supplies expense Miscellaneous administrative expense Total operating expenses Income from operations 11 Other revenue and expenses: 22 Interest expense 25 Interest revenue 24 Income before income tax 25 Income tax expense * Income before income tax 27 Preferred stock * Total liabilities and stockholders' equity Earings per common share $30,000.00 50.000.00 15 170,000.00 17 10,000.00 11 7,500.00 267.500.00 1,152,500.00 $401,500.00 21.000.00 2.720.00 469,500.00 329,000.00 $329,000.00 100,000.00 $229,000.00 Net income $9.29 Instructions Labels and Amount Descriptions Income Statement Retained Earnings Statement Balance Sheet b. Propare a retained earnings statement for the year onded December 31, 2045. Be sure to complete the statement heading. Refer to the account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. It a net loss is incurred or there is a decrease in owner's equity, enter that amount as a negative number using a minus sign $9,319,725.00 Equinox Products Inc Retained Earnings Statement For the Year Ended December 31, 2045 Retained earnings, January 1, 2045 2. Net income $329,000.00 Dividends: * Cash dividends for common stock $155,120.00 Cash dividends for preferred stock 100,000.00 Total Retained earnings, December 31, 2045 9,395,605.00 $9.395,605.00 Instructions Labels and Amount Descriptions Income Statement Balance Sheet c. Proparo a balance sheet in raport form as of December 31, 20Y5. Be sure to complete the statement heading. Refer to the account names in the Instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. Lessor * Add will automatically appear if it is required. Enter all amounts as positive numbers. Recall that current assets are to be reported in order of liquidity. Available for sale investments are considered to be more liquid than accounts receivable. Report fixed assets and paid-in capital accounts in account-number order. Omit the description of bonds and stocks (.e. percentage rates, due dute, number of shares, etc.) Equinox Products Inc. Balance Sheet December 31, 2015 1 Assets 2 Current assets Cash $246,000.00 4 Sales $5,254,000.00 3,700,000.00 1,554,000.00 778,000.00 27,400.00 1,626,000.00 4,320,000.00 $1.842,705.00 $700,000.00 $13,500,000.00 Less: Cost of merchandise sold Operating expenses Less selling expenses Prepaid expenses Total current assets Office buildings and equipment 11 Store buildings and equipment 12 Property, plant, and equipment: 13 Goodwill 34 Total assets 15 property, plant 3 property, plant and equipment 17 Less: Office buildings and equipment Store buildings and equipment 13 Less, accumulate depreciation ** Store buildings and equipment 21 Intangible assets: 22 Goodwill 23 Total assets Liabilities 23 Current liabilities: 26account payable 17 premium on bond payable 23 Income tax payable Total current liabilities: $194,300.00 44,000.00 $238,500.00 500,000.00 519,000.00 757,300.00 500,000.00 $14,616,005.00 $194,300.00 19,000.00 $44,000.00 20 non current liabilities $257,300.00 Instructions Labels and Amount Descriptions Income Statement 2.UU 1,626,000.00 4,320,000.00 $1,842.705.00 $700,000.00 $13.500.000,00 $194,300.00 44,000.00 $238,500.00 500,000.00 519,000.00 757,300.00 500,000.00 $14,616,005.00 Balance Sheet Total current assets * Office buildings and equipment 11 Store buildings and equipment 12 Property, plant, and equipment: 13 Goodwill 14 Total assets 15 property, plant * property, plant and equipment 1 Less: Office buildings and equipment 1 Store buildings and equipment Less accumulate depreciation ** Store buildings and equipment 21 Intangible assets 22 Goodwill 23 Total assets Liabilities 23 Current liabilities: account payable 21 premium on bond payable Income tax payable >> Total current liabilities: non current liabilities 31 Add: Bonds payable Total liabilities Stockholders' Equity 4 Common stock 15 Paid-in capital in excess of par-preferred stock * Common stock preferred 5% stock 580 par (50,000 shares authorized: 20,000 shares issued) > Paid-in capital in excess of par-preferred stock 33 Preferred stock * Total paid-in capital * Retained earnings e Paid-in capital in excess of par-common stock Treasury stock Untealized gain (loss) on available-for-sale investments 5 Total stockholders equity Total liabilities and stockholders equity $194,300.00 19,000.00 $44,000.00 $257,300.00 $500,000.00 $757,300.00 $886,800.00 2.886,800.00 $1,600,000.00 150,000.00 1,750,000.00 $4,636,800.00 9,393,605.00 13,000.00 $178,200.00 6,500.00 13,858,705.00 $14,616,005.00 Instructions Labels and Amount Descriptions Income Statement Retained Earnings Statement Balance Sheet Note: You must complete Comprehensive Problem 4 (Part A} before completing Comprehensive Problem 4 (Part B). Required: 2 After all of the transactions for the year ended December 31, 2045, had been posted [including the transactions recorded in part (1) and all adjusting entries), the data that follows were taken from the records of Equinox Products in a Prepare a multiple-step income statement for the year ended December 31, 2045, 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. Be sure to complete the statement heading. Refer to the account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. Less" or Add will automatically appear it is required. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount For example: Net loss should be negative. Expenses should be positive (Round earnings per share to the nearest cent.) b. Prepare a retained eamings statement for the year ended December 31, 2045. Be sure to complete the statement heading Refer to the account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. Il a net loss is incurred or there is a decrease in owner's equity, enter that amount as a negative number using a minus sign c. Prepare a balance sheet in report form as of December 31, 2015. Be sure to complete the statement heading. Refer to the account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. Lessor-Add will automafically appear if it is required. For those boxes in which you must enter subtractive or negative numbers use a minus sign. Recall that current assets are to be reported in order of liquidity Available-for-sale investments are considered to be more liquid than accounts receivable Report faed assets and paid-in capital accounts in account-number order. Omit the description of bonds and stocks (ie. percentage rates, due date, number of shares, etc.) $150,000 3,700,000 30,000 30,000 100,000 4.980 76,800 142,000 21,000 Income Statement data: Advertising expense Cost of merchandise sold Delivery expense Depreciation expense-office buildings and equipment Depreciation expense-store buildings and equipment Gain on sale of investments Income from Pinkberry Co, investment 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 expense Sales salaries expense Store supplies expense 8.720 7.500 14.000 50,000 170,000 10.000 5,254,000 185,000 385,000 21.000 Retained earnings and balance sheet data: Accounts payable $194,300 Accounts receivable 545,000 Instructions Labels and Amount Descriptions Income Statement Retained Earnings Statement Balance Sheet y expense Office rent expense 50,000 Office salaries expense 170,000 Office supplies expense 10,000 Sales 5.254.000 Sales commissions expense 185,000 Sales salarios expense 385,000 Store supplies expense 21,000 $194,300 545.000 1,580,000 4,125,000 8.450 260,130 500,000 246,000 2,000,000 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 Available-for-sale investments (at cost) Bonds payabio, 5% due in 10 years Cash Common stock $20 par (400,000 shares authorized: 100,000 shares issued, 94,600 outstanding) Dividends: Cash dividends for common stock Cash dividends for preterred stock Goodwill Income tax payable Interest receivable Investment in Pinkberry Co stock (equity method) Investment in Dream Inc. bonds long term Merchandise inventory (December 31, 20Y5) at lower of cost (FIFO) or market Office buildings and equipment Paid-in capital from sale of treasury stock Excess of issue price over par-common stock Excess of issue price over par-preferred stock Preferred $1 stock. Se par (30,000 shares authorized: 20,000 shares issued) Premium on bonds payable Prepaid expenses Retained earnings, January 1, 2045 Store buildings and equipment Treasury stock (5,400 shares of common stock at cost of $33 per share) Unrealized gain (loss) on available for-sale investments Valuation allowance for available-for-sale investments 155,120 100.000 500.000 44,000 1.125 1.009.300 90,000 778,000 4,320,000 13,000 886.800 150.000 1.600.000 19.000 27.400 9,319,725 12.560.000 178,200 (6,500) (6.500) Instructions Labels and Amount Descriptions Income Statement Retained Earnings Statement Balance Sheet Labels Current assets Current liabilities December 31, 2045 Dividends For the Year Ended December 31, 2045 Intangible assets Investments Long-term liabilities Operating expenses Other revenue and expenses Paid-in capital Property, plant, and equipment Amount Descriptions Available-for-sale investments Bonds payable Common stock Decrease in retained earnings From sale of treasury stock Gross profit Investment in Pinkberry Co. Stock Investment in Dream Inc, bonds Income before income tax Income from operations Increase in retained earnings Merchandise inventory, at lower of cost (FIFO) or market Net income Net loss Preferred stock Paid in capital in excess of par-preferred stock Paid-in capital in excess of par-common stock Retained earnings Retained earnings, January 1, 2045 Retained earnings, December 31, 2045 Treasury common stock Total administrative expenses Total Total assets Total current assets Total current liabilities Total abilities Total liabilities and stockholders' equity Total long-term liabilities Instructions Labels and Amount Descriptions Income Statomont Retained Earnings Statement Balance Sheet Intangible assets Investments Long-term liabilities Operating expenses Other revenue and expenses Paid-in capital Property, plant, and equipment Amount Descriptions Available-for-sale investments Bonds payable Common stock Decrease in retained earnings From sale of treasury stock Gross profit Investment in Pinkberry Costock Investment in Dream Inc. bonds Income before income tax Income from operations Increase in retained earnings Merchandise inventory. at lower of cost (FIFO) or market Net income Net loss Preferred stock Paid in capital in excess of par preferred stock Paid in capital in excess of par-common stock Retained earnings Retained earnings, January 1, 2015 Retained earnings, December 31, 2045 Treasury common stock Total administrative expenses Total Total assets Total current assets Total current liabilities Total liabilities Total abilities and stockholders' equity Total long-term liabilities Total investments Total operating expenses Total paid-in capital Total property, plant, and equipment Total selling expenses Total stockholders Instructions Labels and Amount Descriptions Income Statement Income Statement a Prepare a multiple-step income statement for the year ended December 31, 2045, concluding with eamings per share. In computing samnings per Share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were $100,000. Be sure to complete the statement heading. Refer to the account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. tessor Adid will automatically appear if it is required. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. (Round earnings per share to the nearest cent.) $5,254,000.00 3,700,000.00 $1,554,000.00 $30,000.00 100,000.00 185,000.00 385,000.00 21,000.00 11 150,000.00 14,000.00 12 $885,000.00 Equinox Products Inc. Income Statement For the Year Ended December 31, 2045 1 Sales 1 Cost of merchandise sold Gross profit Operating expenses Selling expenses Delivery expense Depreciation expense-store buildings and equipment Merchandise inventory, at lower of cost (FIFO) or market Sales salaries expense Store supplies expense Advertising expense Miscellaneous selling expense 13 Administrative expenses * Depreciation expense-office buildings and equipment Office rent expense Office salaries expense Office supplies expense Miscellaneous administrative expense Total operating expenses Income from operations 11 Other revenue and expenses: 22 Interest expense 25 Interest revenue 24 Income before income tax 25 Income tax expense * Income before income tax 27 Preferred stock * Total liabilities and stockholders' equity Earings per common share $30,000.00 50.000.00 15 170,000.00 17 10,000.00 11 7,500.00 267.500.00 1,152,500.00 $401,500.00 21.000.00 2.720.00 469,500.00 329,000.00 $329,000.00 100,000.00 $229,000.00 Net income $9.29 Instructions Labels and Amount Descriptions Income Statement Retained Earnings Statement Balance Sheet b. Propare a retained earnings statement for the year onded December 31, 2045. Be sure to complete the statement heading. Refer to the account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. It a net loss is incurred or there is a decrease in owner's equity, enter that amount as a negative number using a minus sign $9,319,725.00 Equinox Products Inc Retained Earnings Statement For the Year Ended December 31, 2045 Retained earnings, January 1, 2045 2. Net income $329,000.00 Dividends: * Cash dividends for common stock $155,120.00 Cash dividends for preferred stock 100,000.00 Total Retained earnings, December 31, 2045 9,395,605.00 $9.395,605.00 Instructions Labels and Amount Descriptions Income Statement Balance Sheet c. Proparo a balance sheet in raport form as of December 31, 20Y5. Be sure to complete the statement heading. Refer to the account names in the Instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. Lessor * Add will automatically appear if it is required. Enter all amounts as positive numbers. Recall that current assets are to be reported in order of liquidity. Available for sale investments are considered to be more liquid than accounts receivable. Report fixed assets and paid-in capital accounts in account-number order. Omit the description of bonds and stocks (.e. percentage rates, due dute, number of shares, etc.) Equinox Products Inc. Balance Sheet December 31, 2015 1 Assets 2 Current assets Cash $246,000.00 4 Sales $5,254,000.00 3,700,000.00 1,554,000.00 778,000.00 27,400.00 1,626,000.00 4,320,000.00 $1.842,705.00 $700,000.00 $13,500,000.00 Less: Cost of merchandise sold Operating expenses Less selling expenses Prepaid expenses Total current assets Office buildings and equipment 11 Store buildings and equipment 12 Property, plant, and equipment: 13 Goodwill 34 Total assets 15 property, plant 3 property, plant and equipment 17 Less: Office buildings and equipment Store buildings and equipment 13 Less, accumulate depreciation ** Store buildings and equipment 21 Intangible assets: 22 Goodwill 23 Total assets Liabilities 23 Current liabilities: 26account payable 17 premium on bond payable 23 Income tax payable Total current liabilities: $194,300.00 44,000.00 $238,500.00 500,000.00 519,000.00 757,300.00 500,000.00 $14,616,005.00 $194,300.00 19,000.00 $44,000.00 20 non current liabilities $257,300.00 Instructions Labels and Amount Descriptions Income Statement 2.UU 1,626,000.00 4,320,000.00 $1,842.705.00 $700,000.00 $13.500.000,00 $194,300.00 44,000.00 $238,500.00 500,000.00 519,000.00 757,300.00 500,000.00 $14,616,005.00 Balance Sheet Total current assets * Office buildings and equipment 11 Store buildings and equipment 12 Property, plant, and equipment: 13 Goodwill 14 Total assets 15 property, plant * property, plant and equipment 1 Less: Office buildings and equipment 1 Store buildings and equipment Less accumulate depreciation ** Store buildings and equipment 21 Intangible assets 22 Goodwill 23 Total assets Liabilities 23 Current liabilities: account payable 21 premium on bond payable Income tax payable >> Total current liabilities: non current liabilities 31 Add: Bonds payable Total liabilities Stockholders' Equity 4 Common stock 15 Paid-in capital in excess of par-preferred stock * Common stock preferred 5% stock 580 par (50,000 shares authorized: 20,000 shares issued) > Paid-in capital in excess of par-preferred stock 33 Preferred stock * Total paid-in capital * Retained earnings e Paid-in capital in excess of par-common stock Treasury stock Untealized gain (loss) on available-for-sale investments 5 Total stockholders equity Total liabilities and stockholders equity $194,300.00 19,000.00 $44,000.00 $257,300.00 $500,000.00 $757,300.00 $886,800.00 2.886,800.00 $1,600,000.00 150,000.00 1,750,000.00 $4,636,800.00 9,393,605.00 13,000.00 $178,200.00 6,500.00 13,858,705.00 $14,616,005.00