In: Accounting
Required: | |||||||||
1. | After all of the transactions
for the year ended December 31, 20Y8, had been posted [including
the transactions recorded in part (1) and all adjusting entries],
the data that follow were taken from the records of Equinox
Products Inc.
|
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 |