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A. Journalize the transactions.

B. Prepare a multiple- step income statement for the year ended Dec. 31, 2016 concluding with earnings per share. In computing earnings per share, assume that the average # of common shares outstanding was 100,000 and preferred dividends were $100,000

2. Prepare a retained earnings statement for the year ended DEc. 31, 2016

3. Prepare a balance sheet in report from as Dec. 31. 2016

Journal entries.

1. issued 15,000 shares of $20 par common stock at $30, receving cash

2. Issued 4, 000 shares of $80 par preferred 5% stock at $100, receiving cash.

3. Issued $500,000 of 10Yr. , 5% bonds at 104, with intrest payable semiannyally.

4. Declared a qartely dividend of $0.50 per share on common stock and $100 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.

5. Paid the cash of dividends declared in (d)

6. Purchased 7,500 shares of Sol Sorp. at $40 per share, plus a $150 brokerage commision. the investment is classified as an available-for-sale investment.

7. Purchased 8,000 shares of treasury common stock at $33per share

8. Purchased 40,000 shares of Pink Co, stock directly from the founders for $24 per share. Pink has 125,000 shares issued and outstanding. Equi Inc. treated the investment as an equity method investment

9. Declared a $100 quarerly cahs dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued.

10. Paid the cash dividends to the preferred stockholders.

11. Received $27,500 dividend from Pink. Co. investment in (H)

12. Purchased $900,000 of Dream Inc. 10Yr., 5% bonds, directly from the issuing company, at their face amount plus accrued intrest of $375. The bonds are classified as a held-to-maturity long-term ubvestment.

13. Sold, at $38 per share, 2,600 shares of treasury common stock purchased in (g)

14. Received a dividend of $0.60 per share from the Sol Corp. investment in (f)

15. Sold 1,000 shares of Sol Corp. at $45, including commision

16. Recorded the payment of semiannyal intrest on the bonds issued in (c) and the amortization of the premium for 6 monts. The amortization is determined using the straight-line methiod.

17. Accrued intrest for 3 months on the Dream Inc. bonds purchased in (I)

18. Pink Co. recoreded total earnings of $240,000 Equi. Pro. recorded qeuity earnings for its share of Pink Co. net income.

19. The fair value for Sol Co, stock was $39.02 per share on Dec. 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero.

Income statement data: Advertising expense Cost of merchandise sold Delivery expense Depreciation expen Depreciation expense-store buildings and equipment Dividend revenue Gain on sale of investment Income from Pinkberry Co. investment Income tax expense Interest expense Interest revenue Miscellaneous administrative expense Miscellaneous selling expense Office rent expense Office salaries expense Office supplies expense Sales Sales commissions Sales salaries expense Retained earnings and balance sheet data: 150,000 Accounts payable 3,700,000 Accounts receivable $194300 545,000 1,580,000 4,126,000 8,450 $260,130 500,000 246,000 30,000 Accumulated depreciation-office buildings and equipment 30,000 Accumulated depreciation-store buildings and equipment se-office buildings and equipment 100,000 Allowance for doubtful accounts 4,500 Available-for-sale investments(at cost) 76,800 Cash 21,000 100,000 shares issued, 94,600 outstanding) Bonds payable, 5%, due 2024 140,500 Common stock, $20 par (400,000 shares authorized; 2,000,000 2,720 Dividends: 155,120 100,000 500,000 44,000 1,125 1,009,300 90,000 Cash dividends for common stock 7,500 14,000 50,000 170,000 Cash dividends for preferred stock Goodwill Income tax payable 10,000 Interest receivable 5,254,000 Investment in Pinkberry Co. stock (equity method) 185,000 Investment in Dream Inc. bonds (long term) 385,000 Merchandise inventory (December 31, 2016), at lower of cost (FIFO) or market Office buildings and equipment Paid-in capital from sale of treasury st Excess of issue price over par-common stock Excess of issue price over par-preferred stock Preferred 5% stock, $80 par (30,000 shares authorized; 778,000 4,320,000 13,000 886,800 150,000 20,000 shares issued) Premium on bonds payable Prepaid expenses Retained earnings, January 1, 2016 Store buildings and equipment Treasury stock (5,400 shares of common stock at cost of 1,600,000 19,000 27,400 9,319,725 12,560,000 $33 per share) Unrealized gain (loss) on available-f Valuation allowance for available-for-sale investments 178,200 (6,500) (6,500)

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