Jan. 3 Issued 15,000 shares of $20 par common stock at $30, receiving cash.
Feb. 15 Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash.
May 1 Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually.
16 Declared a quarterly dividend of $0.50 per share on common stock and $1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding.
26 Paid the cash dividends declared on May 16.
Jun. 8 Purchased 8,000 shares of treasury common stock at $33 per share.
30 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.
Jul. 11 Paid the cash dividends to the preferred stockholders.
Record on journal page 11:
Oct. 7 Sold, at $38 per share, 2,600 shares of treasury common stock purchased on Jun. 8.
31 Recorded the payment of semiannual interest on the bonds issued on May 1 and the amortization of the premium for six months. The amortization is determined using the straight-line method.
Required:
1. Journalize the selected transactions. Refer to the Chart of Accounts for exact wording of account titles. Note: on May 16 record the declaration of dividends for common shares and the declaration of dividends for preferred shares as two separate entries.
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.
a. Prepare a multiple-step income statement for the year ended December 31, 20Y8. Enter all amounts as positive numbers EXCEPT in the Other revenue and expense section. In that section only, enter amounts that represent other expenses as negative numbers using a minus sign.
b. Prepare a retained earnings statement for the year ended December 31, 20Y8.*
c. Prepare a balance sheet in report form as of December 31, 20Y8. *

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

Jan. 3 Issued 15,000 shares of $20 par common stock at $30, receivi...