Journalize the selected transactions. Refer to the Chart of Accounts for exact w
ID: 2496869 • Letter: J
Question
Journalize the selected transactions. Refer to the Chart of Accounts for exact wording of account titles. 2. After all of the transactions for the year ended December 31, 2016, 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, 2016, 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. (Round earnings per share to the nearest cent.)* B. Prepare a retained earnings statement for the year ended December 31, 2016.* C. Prepare a balance sheet in report form as of December 31, 2016. * * Read the instructions above each financial statement carefully. They may contain specific instructions for completing the statement. 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 Dividend revenue 4,500 Gain on sale of investments 4,980 Income from Pinkberry Co. investment 76,800 Income tax expense 140,500 Interest expense 21,000 Interest revenue 2,720 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 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 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 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, 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)
Explanation / Answer
Income Statement for the year ended December 31 2016
Statement of retained earnings for the year ended December 31 2016
$ $ Sales 5,254,000 Cost of merchandise sold 37,00,000 Gross margin 15,54,000 Gain on sale of investments 4,980 Income from Investment 76,800 Dividend revenue 4,500 Interest revenue 2,720 16,43,000 Administrative, Sales and Distribution expenses Office salaries expense 170,000 Office supplies expense 10,000 Miscellaneous administrative expense 7,500 Office rent expense 50,000 Advertising expense 150,000 Depreciation expense Office buildings and equipment 30,000: Stores Building and equipment 100,000 Stores supply expense 21,000 Delivery expense 30,000 Miscellaneous selling expense 14,000 Sales commission 185,000 Sales salaries expense 385,000 Interest expense 21,000 Income tax expense 140,500 Earnings after tax 329,000 Preferred dividend 100,000 Eanings available for common stockholders 229,000 Number of shares of common stock outstanding 94,600 Earnings per share of common stock 2.42Related Questions
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