Retained earnings and balance sheet data:Accounts payableAccounts receivableAccumulated depreciation-office buildings and equipmentAccumulated depreciation-store buildings and equipmentAllowance for doubtful accountsBonds payable, 5%, due in 10 yearsCashCommon stock, $20 par (400,000 shares authorized;85,000 shares issued, 94,600 outstanding), January 1, 20Y8Dividends:Sales$194,300545,0001,580,0004,126,000Operating oxpopcos:8,450500,000282,850Cash dividends for common stockCash dividends for preferred stockGoodwillIncome tax payableInterest receivableInventory (December 31, 20Y8), at lower of cost (FIFO) or marketOffice buildings and equipmentPaid-in capital from sale of treasury stock, January 1, 2018Paid-in capital in excess of par-common stock, January 1, 20Y8Paid-in capital in excess of par-preferred stock, January 1, 20Y8Preferred 5% stock, $80 par (30,000 shares authorized;16,000 shares issued), January 1, 20Y8Premium on bonds payablePrepaid expensesRetained earnings, January 1, 20Y8Store buildings and equipmentTreasury stock, January 1, 20Y8a. Prepare a multiple-step income statement for the year ended December 31, 20Y8.Equinox Products Inc.Income StatementFor the Year Ended December 31, 20Y81,700,000155,120100,000700,00044,0001,200778,0004,320,000736,80070,00001,280,00019,00027,4008,197,22012,560,000$$0 Income statement data:Advertising expenseCost of goods soldDelivery expenseDepreciation expense-office buildings and equipmentDepreciation expense-store buildings and equipmentIncome tax expenseInterest expenseInterest revenueMiscellaneous administrative expenseMiscellaneous selling expenseOffice rent expenseOffice salaries expenseOffice supplies expenseSalesSales commissionsSales salaries expenseStore supplies expenseRetained earnings and balance sheet data:Accounts payableAccounts receivableAccumulated depreciation-office buildings and equipmentAccumulated depreciation-store buildings and equipmentAllowance for doubtful accountsBonds payable, 5%, due in 10 yearsCashCommon stock, $20 par (400,000 shares authorized;85,000 shares issued, 94,600 outstanding), January 1, 20Y8Dividends:Cash dividends for common stockCash dividends for preferred stockGoodwillIncome tax payable$150,0003,700,00030,00030,000100,000140,50021,00030,0007,50014,00050,000170,00010,0005,313,000185,000385,00021,000$194,300545,0001,580,0004,126,0008,450500,000282,8501,700,000155,120100,000700,00044,000

Lets understand the basics. Income statement can be prepared using format of , (1) Single step…

Retained earnings and balance sheet data: Accounts payable Accounts receivable Accumulated depreciation-office buildings and equipment Accumulated depreciation-store buildings and equipment Allowance for doubtful accounts Bonds payable, 5%, due in 10 years Cash Common stock, $20 par (400,000 shares authorized; 85,000 shares issued, 94,600 outstanding), January 1, 20Y8 Dividends: $194,300 545,000 1,580,000 4,126,000 8,450 500,000 282,850 1,700,000

Retained earnings and balance sheet data: Accounts payable Accounts receivable Accumulated depreciation-office buildings and equipment Accumulated depreciation-store buildings and equipment Allowance for doubtful accounts Bonds payable, 5%, due in 10 years Cash Common stock, $20 par (400,000 shares authorized; 85,000 shares issued, 94,600 outstanding), January 1, 20Y8 Dividends: $194,300 545,000 1,580,000 4,126,000 8,450 500,000 282,850 1,700,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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pp. Subject :- Accounting
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