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In: Accounting

Income Statement data: Advertising expense $ 150,000 Cost of goods sold 3,700,000 Delivery expense 30,000 Depreciation...

Income Statement data:
Advertising expense $ 150,000
Cost of goods sold 3,700,000
Delivery expense 30,000
Depreciation expense-office buildings and equipment 30,000
Depreciation expense-store buildings and equipment 100,000
Income tax expense 140,500
Interest expense 21,000
Interest revenue 30,000
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 5,313,000
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
Bonds payable, 5%, due in 10 years 500,000
Cash 282,850
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 700,000
Income tax payable 44,000
Interest receivable 1,200
Inventory (December 31, 20Y8),
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, 20Y8 8,197,220
Store buildings and equipment 12,560,000
Treasury stock
(5,400 shares of common stock at cost of $33 per share) 178,200

prepare a balance sheet.

2.
c. Prepare a balance sheet in report form as of December 31, 20Y8. You are not required to present the details of Preferred and Common Stock (i.e., number of shares authorized, issued and outstanding).
Refer to the Chart of Accounts for exact wording of account titles.
Refer to the Labels and Amount Descriptions for exact wording of text entries.
Recall that current assets are to be reported in order of liquidity.
Report fixed assets and paid-in capital accounts in account-number order.
Omit the description of bonds and stocks (i.e., percentage rates, due date, number of shares, etc.)
For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Equinox Products, Inc.

Balance Sheet

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Liabilities

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Solutions

Expert Solution

Equinox Products, Inc.
Balance Sheet
At Dec 31, 20Y8
Assets
Current Assets
Cash          282,850.00
Accounts Receivable          545,000.00
Allowance for Doubtful Accounts            (8,450.00)          536,550.00
Inventory          778,000.00
Interest Receivable               1,200.00
Prepaid Expenses            27,400.00
Total Current Assets      1,626,000.00
Property, Plant & Equipment
Office Buildings & Equipment      4,320,000.00
Accumulated Dep. - Office Buildings & Equipment    (1,580,000.00)      2,740,000.00
Store Buildings & Equipment    12,560,000.00
Accumulated Dep. - Store Buildings & Equipment    (4,126,000.00)      8,434,000.00
Total Property, Plant & Equipment    11,174,000.00
Intangible Assets
Goodwill          700,000.00
Total Assets    13,500,000.00
Liabilities & Stockholders' Equity
Liabilities
Current Liabilities
Accounts Payable          194,300.00
Income Tax Payable            44,000.00
Total Current Liabilities          238,300.00
Long-Term Liabilities
Bonds Payable          500,000.00
Premium on Bonds Payable            19,000.00          519,000.00
Total Long-Term Liabilities          519,000.00
Total Liabilities          757,300.00
Total Shareholders' Equity
Paid-in Capital
Preferred Stock      1,600,000.00
Common Stock      2,000,000.00
Excess of Issue Price Over Par
Common Stock          886,800.00
Preferred Stock          150,000.00
Paid-in Capital From Sale of Trearury Stock            13,000.00      1,049,800.00
Total Paid In Capital      4,649,800.00
Retained Earnings      8,271,100.00
Sub-total    12,920,900.00
Treasury Stock        (178,200.00)
Total Stockholders Equity    12,742,700.00
Total Liabilities & Stockholders' Equity    13,500,000.00
Equinox Products, Inc.
Statement of Retained Earnings
For the Year Ended Dec 31, 20Y8
Beginning Balance - Jan 1, 20Y8      8,197,220.00
Dividends:
Cash Dividends for Common Stock        (155,120.00)
Cash Dividends for Preferred Stock        (100,000.00)        (255,120.00)
Sub-Total      7,942,100.00
Net Income          329,000.00
Ending Balance - Dec 31, 20Y8      8,271,100.00
Income Statement
For the Year Ended Dec 31, 20Y8
Sales      5,313,000.00
Cost of Goods Sold      3,700,000.00
Gross Income      1,613,000.00
Less Expenses
Advertising expense          150,000.00
Delivery Expense            30,000.00
Dep. Exp. - Ofice Building & Equipment            30,000.00
Dep. Exp. - Store Building & Equipment          100,000.00
Misc Administrative Expense               7,500.00
Misc Selling expense            14,000.00
Office Rent Expense            50,000.00
Office Salaries Expense          170,000.00
Office Supplies Expense            10,000.00
Sales Commission          185,000.00
Sales Salaries Expense          385,000.00
Store Supplies Expense            21,000.00      1,152,500.00
Net Operating Income          460,500.00
Other Income or Expense:
Interest Expense            21,000.00
Interest Revenue            30,000.00               9,000.00
Net Income before Tax          469,500.00
Income Tax Expense          140,500.00
Net Income          329,000.00

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