After all of the transactions for the year ended December

2. After all of the transactions for the year ended December 31, 2014, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data below and on the following page were taken from the records of Equinox Products Inc.a. Prepare a multiple-step income statement for the year ended December 31, 2014, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were $100,000. (Round earnings per share to the nearest cent.)b. Prepare a retained earnings statement for the year ended December 31, 2014.c. Prepare a balance sheet in report form as of December 31, 2014.Income statement data:Advertising expense …………………………………………$ 150,000Cost of merchandise sold…………………………………….3,700,000Delivery expense …………………………………………….30,000Depreciation expense—office buildings and equipment……..30,000Depreciation expense—store buildings and equipment ………100,000Dividend revenue………………………………………………4,500Gain on sale of investment……………………………………..4,980Income from Pinkberry Co. investment…………………………76,800Income tax expense……………………………………………..140,500Interest expense…………………………………………………21,000Interest revenue………………………………………………….2,720Miscellaneous administrative expense……………………………7,500Miscellaneous selling expense……………………………………14,000Office rent expense……………………………………………….50,000Office salaries expense…………………………………………….170,000Office supplies expense……………………………………………10,000Sales……………………………………………………………….5,254,000Sales commissions…………………………………………………185,000Sales salaries expense……………………………………………..385,000Store supplies expense…………………………………………….21,000Retained earnings and balance sheet data:Accounts payable …………………………………………………$ 194,300Accounts receivable……………………………………………….545,000Accumulated depreciation—office buildings and equipment……1,580,000Accumulated depreciation—store buildings and equipment ……4,126,000Allowance for doubtful accounts…………………………………8,450Available-for-sale investments (at cost) ………………………….260,130Bonds payable, 5%, due 2022…………………………………….500,000Cash …………………………………………………………….246,000Common stock, $20 par (400,000 shares authorized;100,000 shares issued, 94,600 outstanding) ……………………2,000,000Dividends:Cash dividends for common stock………………………………155,120Cash dividends for preferred stock…………………………….100,000Stock dividends for common stock ……………………………66,240Goodwill ……………………………………………………….500,000Income tax payable …………………………………………….44,000Interest receivable ………………………………………………1,125Investment in Pinkberry Co. stock (equity method)……………1,009,300Investment in Dream Inc. bonds (long term) …………………..90,000Merchandise inventory (December 31, 2014), at lowerof cost (FIFO) or market………………………………………..$ 778,000Office buildings and equipment…………………………………4,320,000Paid-in capital from sale of treasury stock………………………13,000Excess of issue price over par—common stock…………………886,800Excess of issue price over par—preferred stock…………………150,000Preferred 5% stock, $80 par (30,000 shares authorized;20,000 shares issued) …………………………………………….1,600,000Premium on bonds payable………………………………………19,000Prepaid expenses…………………………………………………27,400Retained earnings, January 1, 2014………………………………9,319,725Store buildings and equipment…………………………………….12,560,000Treasury 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)Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were $100,000. (Round earnings per share to the nearest cent.)