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 $31,20$Y$5,$ 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 $31,20$Y$5,$ 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$$will automatically appear if it is required. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive. $($Round earnings per share to the nearest cent.$)$b$.$Prepare a retained earnings statement for the year ended December $31,20$Y$5.$ Be sure to complete the statement heading. Refer to the account names in the instructions and the lists of Labels and Amount Descriptions for the exact wording of text entries. If a net loss is incurred or there is a decrease in owner$$s equity, enter that amount as a negative number using a minus sign.c$.$Prepare a balance sheet in report form as of December $31,20$Y$5.$ 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$$method$)1,009,300$Investment in Dream Inc. bonds $($long term$)90,000$Merchandise inventory $($December $31,20$Y$5),$ at lower of cost $($FIFO$)$ or market$778,000$Office buildings and equipment$4,320,000$Paid$-$in capital from sale of treasury stock$13,000$Excess of issue price over par$-$common stock$886,800$Excess of issue price over par$--$preferred stock$150,000$Preferred $$1$ stock, $$80$ par$(30,000$ shares authorized; $20,000$ shares issued$)1,600,000$Premium on bonds payable$19,000$Prepaid expenses$27,400$Retained earnings, January $1,20$Y$59,319,725$Store buildings and equipment$12,560,000$Treasury stock$(5,400$shares$$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$(6,500)$