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, 20Y5, 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 Inc.

a.	Prepare a multiple-step income statement for the year ended December 31, 20Y5, 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 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.)
b.	Prepare a retained earnings statement for the year ended 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. If a net loss is incurred or there is a decrease in owners equity, enter that amount as a negative number using a minus sign.
c.	Prepare a balance sheet in report 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. Less or Add will automatically 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 fixed assets and paid-in capital accounts in account-number order. Omit the description of bonds and stocks (i.e., percentage rates, due date, number of shares, etc.).

Income Statement data:
Advertising expense	$150,000
Cost of merchandise sold	3,700,000
Delivery expense	30,000
Depreciation expense-office buildings and equipment	30,000
Depreciation expense-store buildings and equipment	100,000
Gain on sale of investments	4,980
Income from Pinkberry Co. investment	76,800
Income tax expense	142,000
Interest expense	21,000
Interest revenue	8,720
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	5,254,000
Sales commissions expense	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
Available-for-sale investments (at cost)	260,130
Bonds payable, 5%, due in 10 years	500,000
Cash	246,000
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	500,000
Income tax payable	44,000
Interest receivable	1,125
Investment in Pinkberry Co. stock (equity method)	1,009,300
Investment in Dream Inc. bonds (long term)	90,000
Merchandise inventory (December 31, 20Y5),
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 stock	886,800
Excess of issue price over par--preferred stock	150,000
Preferred $1 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, 20Y5	9,319,725
Store buildings and equipment	12,560,000
Treasury stock
(5,400 shares of common stock at cost of $33 per share)	178,200
Unrealized gain (loss) on available-for-sale investments	(6,500)
Valuation allowance for available-for-sale investments	(6,500)

The image is the answers to the aforementioned Part A

Joumal Shaded cells have beedback Shaded cells have feedback X Score: 319/337 ACCOUNTING EQUATI Journal 1 JOURNAL Ost. 1 Investments-Dream Inc. Bonds Interest Receivable 90.000,00 375.00 1 DATE DESCRIPTION POST REF DEBIT CHET ASSETS LIABILITIES 1 Cash Jan. 3 Cash 450.000.00 90.375.00 . 1 1 500.000.00 98.800,00 1 Common Stock Paid-in Capital in Excess of Per-Common Stock Feb. 15 Cash 150,000.00 65.800.00 13.000.00 400,000.00 + 6.000.00 ! Preferred Stock 320,000.00 + 1 Oct. 7 Cash Treasury Stock Paid-in Capital from Sale of Treasury Stock Oct. 14 Cash Interest Revenus Oct 29 Cash Gain on Sale of Investment Available for Sale Investments Solstice Corp. Bands Oct. 31 Interest Expanse 6.000.00 Paldin Capital in Excess of Per-Preferred Story May 1 Cash Bonds Payable 80.000,00 520,000.00 1 45.000.00 + 30 4.980.00 500.000.00 20,000.00 31 9 Premium on Bonds Payabia 40.020.00 11 May 16 Cash Dividends 20.000,00 11.500.00 25 13 Cash Dividends Payable 20,000.00 1.000.00 Premium an Bonds Peyeble Cash 34 12.500,00 Journal Shaded cats have feedback 12 May26 Cash Dividers Payable 70.COM Journal 12 Shaded cells have feedback Oct 31eres Expense 1..500,00 Cach no.com + 15 Premium on Bords Payable 1.000.00 14 Jun. 1 Available for Sale investments-Solstice Corp. Bond 300.150.00 1 38 Cash 12.500.00 1 18 Cash 900, 150LDO + 11 1.125.00 + 1: Juni Treasury Stock 264.000.00 3: 1.125.00 19 Cash 264.000.00 17 76,200.00 + 11 . Jun 22 Investment in Pinkberry Co Stock 960,000.00 1 . 33 Dec. 31 Interest Receivable Interest Revenue Dec 31' lovestment in Pinkberry Ca Stock Income af Pinkbery Co. investment Dec 31 luation Allowance for available for Sale mestrrents Unrealized Loss on Available for Sale Investments 76,100.00 15 960.000.00 Cases 499 Jun 30 Cash Dividends 12 65.000.00 t 21 20,000.00 22 6.500.00 11 20.000.00 Cash Dwidends Payable 1.11' Cash Dividends Payable 12 20,000.00 19 20.000.00 ! CASA Aug 27" Cash Investment in Pinkers Co. Stock 27,500.00 1 25 27.500.00