Income Statement data: Retained earnings and balance sheet data: 2. After all of
ID: 2427503 • Letter: I
Question
Income Statement data:
Retained earnings and balance sheet data:
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 21,000Explanation / Answer
A. Income Statement for the year ended December 31 2016
B. Statement of Retained Earnings for the year ended December 31 2016:
C. Balance Sheet as of December 31 2016:
$ $ Sales 5,254,000 Less cost of merchandise sold 3,700,000 Gross profit 1,554,000 Selling and administrative expense Office salaries expense 170,000 Office rent expense 50,000 Office supplies expense 10,000 Depreciation expense-office buildings and equipment 30,000 Depreciation expense - stores building and equipment 100,000 Advertising expense 150,000 Miscellaneous administrative expense 7,500 Sales salaries expense 385,000 Sales commisions 185,000 Delivery expense 30,000 Stores supplies expense 21,000 Miscellaneous selling expense 14,000 1,152,500 Operating income 401,500 Other income/ expense Dividend revenue 4,500 Gain on sale of investments 4,980 Income from Pinkberry Co. 76,800 Interest revenue 2,720 89,000 Earnings before interest and taxes 490,500 Interest expense 21,000 Earnings before tax 469,500 Income tax expense 140,500 Net income 329,000 Dividends on preferred stock 100,000 Earnings per share($229,000 /100,000 common shares outstanding) $2.29