1. Note: You must complete part 1 before part 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.

   Income statement data:
   Advertising expense	$150,000
   Cost of merchandise sold	3,700,000
   Delivery expense	30,000
   Depreciation expenseoffice buildings and equipment	30,000
   Depreciation expensestore 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 depreciationoffice buildings and equipment	1,580,000
   Accumulated depreciationstore 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 parcommon stock	886,800
   Excess of issue price over parpreferred 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)

   If required, only use the minus sign to indicate loss before income tax, net loss, or a deficit balance in retained earnings.

   Gross profit	$fill in the blank 1
   Total selling expenses	$fill in the blank 2
   Total administrative expenses	$fill in the blank 3
   Total operating expenses	$fill in the blank 4
   Income from operations	$fill in the blank 5
   Net other expenses and income	$fill in the blank 6
   Income tax	$fill in the blank 7
   Net income	$fill in the blank 8
   Earnings per common share (rounded to the nearest cent)	$fill in the blank 9
   Retained earnings, January 1, 20Y5	$fill in the blank 10
   Total current assets	$fill in the blank 11
   Investment in Dream Inc. bonds	$fill in the blank 12
   Total property, plant, and equipment	$fill in the blank 13
   Total assets	$fill in the blank 14
   Total current liabilities	$fill in the blank 15
   Net long-term liabilities	$fill in the blank 16
   Total liabilities	$fill in the blank 17
   Total paid-in capital preferred $1 stock	$fill in the blank 18
   Total paid-in capital common stock, $20 par	$fill in the blank 19
   Total paid-in capital	$fill in the blank 20
   Retained earnings, December 31, 20Y5	$fill in the blank 21
   Total stockholders' equity	$fill in the blank 22