Question

Journalize the selected transactions. Refer to the Chart ofAccounts for exact wording of account titles. 2. After all of thetransactions for the year ended December 31, 2016, had been posted[including the transactions recorded in part (1) and all adjustingentries], the data that follows were taken from the records ofEquinox Products Inc. A. Prepare a multiple-step income statementfor the year ended December 31, 2016, concluding with earnings pershare. In computing earnings per share, assume that the averagenumber of common shares outstanding was 100,000 and preferreddividends were $100,000. (Round earnings per share to the nearestcent.)* B. Prepare a retained earnings statement for the year endedDecember 31, 2016.* C. Prepare a balance sheet in report form as ofDecember 31, 2016. * * Read the instructions above each financialstatement carefully. They may contain specific instructions forcompleting the statement. Income Statement data: Advertisingexpense $ 150,000 Cost of merchandise sold 3,700,000 Deliveryexpense 30,000 Depreciation expense-office buildings and equipment30,000 Depreciation expense-store buildings and equipment 100,000Dividend revenue 4,500 Gain on sale of investments 4,980 Incomefrom Pinkberry Co. investment 76,800 Income tax expense 140,500Interest expense 21,000 Interest revenue 2,720 Miscellaneousadministrative expense 7,500 Miscellaneous selling expense 14,000Office rent expense 50,000 Office salaries expense 170,000 Officesupplies expense 10,000 Sales 5,254,000 Sales commissions 185,000Sales salaries expense 385,000 Store supplies expense 21,000Retained earnings and balance sheet data: Accounts payable $194,300 Accounts receivable 545,000 Accumulated depreciation—officebuildings and equipment 1,580,000 Accumulated depreciation—storebuildings and equipment 4,126,000 Allowance for doubtful accounts8,450 Available-for-sale investments (at cost) 260,130 Bondspayable, 5%, due 2024 500,000 Cash 246,000 Common stock, $20 par(400,000 shares authorized; 100,000 shares issued, 94,600outstanding) 2,000,000 Dividends: Cash dividends for common stock155,120 Cash dividends for preferred stock 100,000 Goodwill 500,000Income tax payable 44,000 Interest receivable 1,125 Investment inPinkberry Co. stock (equity method) 1,009,300 Investment in DreamInc. bonds (long term) 90,000 Merchandise inventory (December 31,2016), at lower of cost (FIFO) or market 778,000 Office buildingsand equipment 4,320,000 Paid-in capital from sale of treasury stock13,000 Excess of issue price over par: -Common 886,800 -Preferred150,000 Preferred 5% stock, $80 par (30,000 shares authorized;20,000 shares issued) 1,600,000 Premium on bonds payable 19,000Prepaid expenses 27,400 Retained earnings, January 1, 20169,319,725 Store buildings and equipment 12,560,000 Treasury stock(5,400 shares of common stock at cost of $33 per share) 178,200Unrealized gain (loss) on available-for-sale investments (6,500)Valuation allowance for available-for-sale investments (6,500)