Retained earnings and balance sheet data: Accounts payable$ 194,300 Accounts rec

ID: 2426644 • Letter: R

Question

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 2024 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 stock155,120

Cash dividends for preferred stock100,000

Goodwill500,000

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, 2016), 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 886,800 -Preferred 150,000

Preferred 5% 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, 2016 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)

QUESTION: Prepare a retained earnings statement for the year ended December 31, 2016. • Refer to the Chart of Accounts for exact wording of account titles. • Refer to the Labels and Amount Descriptions for exact wording of text entries. • You will need to enter the word “Less” or “Add” as necessary.

Equinox Products, Inc.

Retained Earnings Statement

Equinox Products, Inc.

Retained Earnings Statement

Explanation / Answer

Equinox Products, Inc.

Retained Earnings Statement

Retained earnings, January 1, 2016

$ 9,319,725

Add: Net income (Not given)

$ -

Less: Dividends :

Cash dividends for common stock

$ (155,120)

Cash dividends for preferred stock

$ (100,000)

Retained earnings, Dec 31, 2016

$ 9,064,605