Income statement data: Advertising expense Cost of goods sold Delivery expense Depreciation expense-office bulldings and equipment Depreciation expense-store buildings and equipment Income tax expense Interest expense Interest revenue $ 150,000 3,700,000 30,000 30,000 100,000 140,500 21,000 30,000 Miscellaneous administrative expense Miscellaneous selling expense Office rent expense Office salarles expense Office supplies expense 7,500 14,000 50,000 170,000 10,000 Sales 5,313,000 Sales commissions Sales salaries expense Store supplies expense 185,000 385,000 21,000 Retained earnings and balance sheet data: Accounts payable $ 194,300 545,000 Accounts recelvable Accumulated deprecdation-office buldings and equipment Accumulated depreclation-store bulldings and equipment Allowance for doubtful accounts 1,580,000 4,126,000 8,450 Bonds payable, 5%, due in 10 years 500,000 282,850 Cash Common stock, $20 par (400,000 shares authorized; 85,000 shares Issued, 94,600 outstanding), January 1, 20Y8 1,700,000 Dividends: 155,120 100,000 700,000 Cash dividends for common stock Cash dividends for preferred stock Goodwll Income tax payable 44,000 Interest recelvable 1,200 Inventory (December 31, 20Y8), at lower of cost (FIFO) or market Office buldings and equipment Paid-in capital from sale of treasury stock, January 1, 20Y8 Pald-in capital in excess of par-common stock, January 1, 20Y8 Pald-in capital in excess of par-preferred stock, January 1, 20Y8 778,000 4,320,000 736,800 70,000 Preferred 5% stock, $80 par (30,000 shares authorized; 16,000 shares Issued), January 1, 20Y8 Premium on bonds payable Prepald expenses Retained earnings, January 1, 20Y8 Store buildings and equipment Treasury stock, January 1, 20Y8 1,280,000 19,000 27,400 8,197,220 12,560,000
Selected transactions completed by Equinox Products Inc. during the
fiscal year ended December 31, 20Y8, were as follows:
a. Issued 15,000 shares of $20 par common stock at $30, receiving
cash.
b. Issued 4,000 shares of $80 par preferred 5% stock at $100,
receiving cash.
c. Issued $500,000 of 10-year, 5% bonds at 104, with interest
payable semiannually.
d. Declared a quarterly dividend of $0.50 per share on common
stock and $1.00 per share on
100,000 shares of common stock were outstanding, no treasury
shares were held, and 20,000 shares of preferred stock were
outstanding.
e. Paid the cash dividends declared in (d).
f. Purchased 8,000 shares of
share
g. Declared a $1.00 quarterly cash dividend per share on preferred
stock. On the date of record, 20,000 shares of preferred stock had
been issued.
h. Paid the cash dividends to the preferred stockholders.
i. Sold, at $38 per share, 2,600 shares of treasury common stock
purchased in (f).
j. Recorded the payment of semiannual interest on the bonds
issued in (c) and the amortization of the premium for six months.
The amortization is determined using the straight-line method.
Instructions
1. Journalize the selected transactions.
2. The data that follow were taken from the records of Equinox
Products Inc. Unless otherwise stated, assume a December 31
balance after
a. Prepare a multiple-step income statement for the year ended December 31, 20Y8.
b. Prepare a statement of
c. Prepare a balance sheet in report form as of December 31, 20Y8.
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