Selected transactions completed by Everyday Products Inc. during the fiscal year ending December 31, 2012, were as follows:

i. Declared a 2% stock dividend on common stock and a $1.25 quarterly cash dividend per share on preferred stock. On the date of declaration, the market value of the common stock was$40 per share. On the date of record, 85,000 shares of common stock had been issued, 6,500 shares of treasury common stock were held, and 17,000 shares of preferred stock had been issued.

Instructions

1. Journalize the selected transactions.
2. After all of the transactions for the year ended December 31, 2012, 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 Everyday Products Inc.

a. Prepare a multiple-step income statement for the year ended December 31, 2012, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 84,000 and preferred dividends were $85,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2012. c. Prepare a balance sheet in report form as of December 31, 2012.

$$\begin{aligned} &\textbf { Income statement data: }\\ &\begin{array}{lr} \hline \text { Advertising expense } & \$ 125,000 \\ \text { Cost of merchandise sold } & 3,650,000 \\ \text { Delivery expense } & 29,000 \\ \text { Depreciation expense-office buildings and equipment } & 26,000 \\ \text { Depreciation expense-store buildings and equipment } & 95,000 \\ \text { Dividend revenue } & 3,575 \\ \text { Gain on sale of investment } & 2,225 \\ \text { Income from Lifecare Co. investment } & 65,600 \\ \text { Income tax expense } & 128,500 \\ \text { Interest expense } & 19,000 \\ \text { Interest revenue } & 1,800 \\ \text { Miscellaneous administrative expense } & 7,500 \\ \text { Miscellaneous selling expense } & 13,750 \\ \text { Office rent expense } & 50,000 \\ \text { Office salaries expense } & 165,000 \\ \text { Office supplies expense } & 10,000 \\ \text { Sales } & 5,145,000 \\ \text { Sales commissions } & 182,000 \\ \text { Sales salaries expense } & 365,000 \\ \text { Store supplies expense } & 22,000 \end{array} \end{aligned}$$

$$\begin{aligned} &\textbf { Retained earnings and balance sheet data: }\\ &\begin{array}{lr} \hline \text { Accounts payable } & \$ 195,000 \\ \text { Accounts receivable } & 543,000 \\ \text { Accumulated depreciation–office buildings and equipment } & 1,580,000 \\ \text { Accumulated depreciation-store buildings and equipment } & 4,126,000 \\ \text { Allowance for doubtful accounts } & 8,150 \\ \text { Available-for-sale investments (at cost) } & 110,250 \\ \text { Bonds payable, 6\%, due 2022 } & 400,000 \\ \text { Cash } & 240,000 \\ \text { Common stock, \$25 par (400,000 shares authorized; } & \\ \quad 86,570 \text { shares issued, } 82,670 \text { outstanding) } & 2,164,250 \\ \text { Dividends: } & \\ \quad \text { Cash dividends for common stock } & 155,120 \\ \quad \text { Cash dividends for preferred stock } & 85,000 \\ \quad\text { Stock dividends for common stock } & 62,800 \\ \text { Goodwill } & 510,000 \\ \text { Income tax payable } & 40,000 \\ \text { Interest receivable } & 930 \\ \text { Investment in Lifecare Co. stock (equity method) } & 689,100 \\ \text { Investment in Nordic Wear Inc. bonds (long term) } & 62,000\\ \text { Merchandise inventory (December 31, 2012), at lower }\\ \quad\text { of cost (FIFO) or market } & \$780,000 \\ \text { Office buildings and equipment } & 4,320,000 \\ \text { Paid-in capital from sale of treasury stock } & 18,200 \\ \text { Paid-in capital in excess of par-common stock } & 842,000 \\ \text { Paid-in capital in excess of par-preferred stock } & 150,000 \\ \text { Preferred 5\% stock, \$100 par (30,000 shares authorized; } & \\ \quad 17,000 \text { shares issued) } & 1,700,000 \\ \text { Premium on bonds payable } & 19,000 \\ \text { Prepaid expenses } & 26,500 \\ \text { Retained earnings, January 1, 2012 } & 8,708,150 \\ \text { Store buildings and equipment } & 12,560,000 \\ \text { Treasury stock (3,900 shares of common stock at cost of } & \\ \quad \$ 35 \text { per share) } & 136,500 \\ \text { Unrealized gain (loss) on available-for-sale investments } & (17,750) \\ \text { Valuation allowance for available-for-sale investments } & (17,750)\\ \end{array} \end{aligned}$$

Selected transactions completed by Everyday Products Inc. during the fiscal year ending December 31, 2012, were as follows:

e. Paid the cash dividends declared in (d).

Instructions

1. Journalize the selected transactions.
2. After all of the transactions for the year ended December 31, 2012, 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 Everyday Products Inc.

a. Prepare a multiple-step income statement for the year ended December 31, 2012, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 84,000 and preferred dividends were $85,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2012. c. Prepare a balance sheet in report form as of December 31, 2012.

$$\begin{aligned} &\textbf { Income statement data: }\\ &\begin{array}{lr} \hline \text { Advertising expense } & \$ 125,000 \\ \text { Cost of merchandise sold } & 3,650,000 \\ \text { Delivery expense } & 29,000 \\ \text { Depreciation expense-office buildings and equipment } & 26,000 \\ \text { Depreciation expense-store buildings and equipment } & 95,000 \\ \text { Dividend revenue } & 3,575 \\ \text { Gain on sale of investment } & 2,225 \\ \text { Income from Lifecare Co. investment } & 65,600 \\ \text { Income tax expense } & 128,500 \\ \text { Interest expense } & 19,000 \\ \text { Interest revenue } & 1,800 \\ \text { Miscellaneous administrative expense } & 7,500 \\ \text { Miscellaneous selling expense } & 13,750 \\ \text { Office rent expense } & 50,000 \\ \text { Office salaries expense } & 165,000 \\ \text { Office supplies expense } & 10,000 \\ \text { Sales } & 5,145,000 \\ \text { Sales commissions } & 182,000 \\ \text { Sales salaries expense } & 365,000 \\ \text { Store supplies expense } & 22,000 \end{array} \end{aligned}$$

$$\begin{aligned} &\textbf { Retained earnings and balance sheet data: }\\ &\begin{array}{lr} \hline \text { Accounts payable } & \$ 195,000 \\ \text { Accounts receivable } & 543,000 \\ \text { Accumulated depreciation–office buildings and equipment } & 1,580,000 \\ \text { Accumulated depreciation-store buildings and equipment } & 4,126,000 \\ \text { Allowance for doubtful accounts } & 8,150 \\ \text { Available-for-sale investments (at cost) } & 110,250 \\ \text { Bonds payable, 6\%, due 2022 } & 400,000 \\ \text { Cash } & 240,000 \\ \text { Common stock, \$25 par (400,000 shares authorized; } & \\ \quad 86,570 \text { shares issued, } 82,670 \text { outstanding) } & 2,164,250 \\ \text { Dividends: } & \\ \quad \text { Cash dividends for common stock } & 155,120 \\ \quad \text { Cash dividends for preferred stock } & 85,000 \\ \quad\text { Stock dividends for common stock } & 62,800 \\ \text { Goodwill } & 510,000 \\ \text { Income tax payable } & 40,000 \\ \text { Interest receivable } & 930 \\ \text { Investment in Lifecare Co. stock (equity method) } & 689,100 \\ \text { Investment in Nordic Wear Inc. bonds (long term) } & 62,000\\ \text { Merchandise inventory (December 31, 2012), at lower }\\ \quad\text { of cost (FIFO) or market } & \$780,000 \\ \text { Office buildings and equipment } & 4,320,000 \\ \text { Paid-in capital from sale of treasury stock } & 18,200 \\ \text { Paid-in capital in excess of par-common stock } & 842,000 \\ \text { Paid-in capital in excess of par-preferred stock } & 150,000 \\ \text { Preferred 5\% stock, \$100 par (30,000 shares authorized; } & \\ \quad 17,000 \text { shares issued) } & 1,700,000 \\ \text { Premium on bonds payable } & 19,000 \\ \text { Prepaid expenses } & 26,500 \\ \text { Retained earnings, January 1, 2012 } & 8,708,150 \\ \text { Store buildings and equipment } & 12,560,000 \\ \text { Treasury stock (3,900 shares of common stock at cost of } & \\ \quad \$ 35 \text { per share) } & 136,500 \\ \text { Unrealized gain (loss) on available-for-sale investments } & (17,750) \\ \text { Valuation allowance for available-for-sale investments } & (17,750)\\ \end{array} \end{aligned}$$

Dristol Company acquired $56,000 Reynolds Company, 4.5% bonds on April 1, 2012, at par value. Interest is paid semiannually on April 1 and October 1. On October 1, 2012, Dristol sold$20,000 of the bonds for 99.

Journalize entries to record the following: d. The accrual of $637 interest on December 31, 2012.

Selected transactions completed by Everyday Products Inc. during the fiscal year ending December 31, 2012, were as follows:

d. Declared a quarterly dividend of $0.45 per share on common stock and$1.25 per share on preferred stock. On the date of record, 85,000 shares of common stock were outstanding, no treasury shares were held, and 17,000 shares of preferred stock were outstanding.

Instructions

1. Journalize the selected transactions.
2. After all of the transactions for the year ended December 31, 2012, 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 Everyday Products Inc.

a. Prepare a multiple-step income statement for the year ended December 31, 2012, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 84,000 and preferred dividends were $85,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2012. c. Prepare a balance sheet in report form as of December 31, 2012.

$$\begin{aligned} &\textbf { Income statement data: }\\ &\begin{array}{lr} \hline \text { Advertising expense } & \$ 125,000 \\ \text { Cost of merchandise sold } & 3,650,000 \\ \text { Delivery expense } & 29,000 \\ \text { Depreciation expense-office buildings and equipment } & 26,000 \\ \text { Depreciation expense-store buildings and equipment } & 95,000 \\ \text { Dividend revenue } & 3,575 \\ \text { Gain on sale of investment } & 2,225 \\ \text { Income from Lifecare Co. investment } & 65,600 \\ \text { Income tax expense } & 128,500 \\ \text { Interest expense } & 19,000 \\ \text { Interest revenue } & 1,800 \\ \text { Miscellaneous administrative expense } & 7,500 \\ \text { Miscellaneous selling expense } & 13,750 \\ \text { Office rent expense } & 50,000 \\ \text { Office salaries expense } & 165,000 \\ \text { Office supplies expense } & 10,000 \\ \text { Sales } & 5,145,000 \\ \text { Sales commissions } & 182,000 \\ \text { Sales salaries expense } & 365,000 \\ \text { Store supplies expense } & 22,000 \end{array} \end{aligned}$$

$$\begin{aligned} &\textbf { Retained earnings and balance sheet data: }\\ &\begin{array}{lr} \hline \text { Accounts payable } & \$ 195,000 \\ \text { Accounts receivable } & 543,000 \\ \text { Accumulated depreciation–office buildings and equipment } & 1,580,000 \\ \text { Accumulated depreciation-store buildings and equipment } & 4,126,000 \\ \text { Allowance for doubtful accounts } & 8,150 \\ \text { Available-for-sale investments (at cost) } & 110,250 \\ \text { Bonds payable, 6\%, due 2022 } & 400,000 \\ \text { Cash } & 240,000 \\ \text { Common stock, \$25 par (400,000 shares authorized; } & \\ \quad 86,570 \text { shares issued, } 82,670 \text { outstanding) } & 2,164,250 \\ \text { Dividends: } & \\ \quad \text { Cash dividends for common stock } & 155,120 \\ \quad \text { Cash dividends for preferred stock } & 85,000 \\ \quad\text { Stock dividends for common stock } & 62,800 \\ \text { Goodwill } & 510,000 \\ \text { Income tax payable } & 40,000 \\ \text { Interest receivable } & 930 \\ \text { Investment in Lifecare Co. stock (equity method) } & 689,100 \\ \text { Investment in Nordic Wear Inc. bonds (long term) } & 62,000\\ \text { Merchandise inventory (December 31, 2012), at lower }\\ \quad\text { of cost (FIFO) or market } & \$780,000 \\ \text { Office buildings and equipment } & 4,320,000 \\ \text { Paid-in capital from sale of treasury stock } & 18,200 \\ \text { Paid-in capital in excess of par-common stock } & 842,000 \\ \text { Paid-in capital in excess of par-preferred stock } & 150,000 \\ \text { Preferred 5\% stock, \$100 par (30,000 shares authorized; } & \\ \quad 17,000 \text { shares issued) } & 1,700,000 \\ \text { Premium on bonds payable } & 19,000 \\ \text { Prepaid expenses } & 26,500 \\ \text { Retained earnings, January 1, 2012 } & 8,708,150 \\ \text { Store buildings and equipment } & 12,560,000 \\ \text { Treasury stock (3,900 shares of common stock at cost of } & \\ \quad \$ 35 \text { per share) } & 136,500 \\ \text { Unrealized gain (loss) on available-for-sale investments } & (17,750) \\ \text { Valuation allowance for available-for-sale investments } & (17,750)\\ \end{array} \end{aligned}$$

Selected transactions completed by Everyday Products Inc. during the fiscal year ending December 31, 2012, were as follows:

c. Issued $400,000 of 10-year, 6% bonds at 105, with interest payable semiannually.

Instructions

1. Journalize the selected transactions.
2. After all of the transactions for the year ended December 31, 2012, 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 Everyday Products Inc.

a. Prepare a multiple-step income statement for the year ended December 31, 2012, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 84,000 and preferred dividends were$85,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2012. c. Prepare a balance sheet in report form as of December 31, 2012.

$$\begin{aligned} &\textbf { Income statement data: }\\ &\begin{array}{lr} \hline \text { Advertising expense } & \$ 125,000 \\ \text { Cost of merchandise sold } & 3,650,000 \\ \text { Delivery expense } & 29,000 \\ \text { Depreciation expense-office buildings and equipment } & 26,000 \\ \text { Depreciation expense-store buildings and equipment } & 95,000 \\ \text { Dividend revenue } & 3,575 \\ \text { Gain on sale of investment } & 2,225 \\ \text { Income from Lifecare Co. investment } & 65,600 \\ \text { Income tax expense } & 128,500 \\ \text { Interest expense } & 19,000 \\ \text { Interest revenue } & 1,800 \\ \text { Miscellaneous administrative expense } & 7,500 \\ \text { Miscellaneous selling expense } & 13,750 \\ \text { Office rent expense } & 50,000 \\ \text { Office salaries expense } & 165,000 \\ \text { Office supplies expense } & 10,000 \\ \text { Sales } & 5,145,000 \\ \text { Sales commissions } & 182,000 \\ \text { Sales salaries expense } & 365,000 \\ \text { Store supplies expense } & 22,000 \end{array} \end{aligned}$$

$$\begin{aligned} &\textbf { Retained earnings and balance sheet data: }\\ &\begin{array}{lr} \hline \text { Accounts payable } & \$ 195,000 \\ \text { Accounts receivable } & 543,000 \\ \text { Accumulated depreciation–office buildings and equipment } & 1,580,000 \\ \text { Accumulated depreciation-store buildings and equipment } & 4,126,000 \\ \text { Allowance for doubtful accounts } & 8,150 \\ \text { Available-for-sale investments (at cost) } & 110,250 \\ \text { Bonds payable, 6\%, due 2022 } & 400,000 \\ \text { Cash } & 240,000 \\ \text { Common stock, \$25 par (400,000 shares authorized; } & \\ \quad 86,570 \text { shares issued, } 82,670 \text { outstanding) } & 2,164,250 \\ \text { Dividends: } & \\ \quad \text { Cash dividends for common stock } & 155,120 \\ \quad \text { Cash dividends for preferred stock } & 85,000 \\ \quad\text { Stock dividends for common stock } & 62,800 \\ \text { Goodwill } & 510,000 \\ \text { Income tax payable } & 40,000 \\ \text { Interest receivable } & 930 \\ \text { Investment in Lifecare Co. stock (equity method) } & 689,100 \\ \text { Investment in Nordic Wear Inc. bonds (long term) } & 62,000\\ \text { Merchandise inventory (December 31, 2012), at lower }\\ \quad\text { of cost (FIFO) or market } & \$780,000 \\ \text { Office buildings and equipment } & 4,320,000 \\ \text { Paid-in capital from sale of treasury stock } & 18,200 \\ \text { Paid-in capital in excess of par-common stock } & 842,000 \\ \text { Paid-in capital in excess of par-preferred stock } & 150,000 \\ \text { Preferred 5\% stock, \$100 par (30,000 shares authorized; } & \\ \quad 17,000 \text { shares issued) } & 1,700,000 \\ \text { Premium on bonds payable } & 19,000 \\ \text { Prepaid expenses } & 26,500 \\ \text { Retained earnings, January 1, 2012 } & 8,708,150 \\ \text { Store buildings and equipment } & 12,560,000 \\ \text { Treasury stock (3,900 shares of common stock at cost of } & \\ \quad \$ 35 \text { per share) } & 136,500 \\ \text { Unrealized gain (loss) on available-for-sale investments } & (17,750) \\ \text { Valuation allowance for available-for-sale investments } & (17,750)\\ \end{array} \end{aligned}$$

Dristol Company acquired $56,000 Reynolds Company, 4.5% bonds on April 1, 2012, at par value. Interest is paid semiannually on April 1 and October 1. On October 1, 2012, Dristol sold$20,000 of the bonds for 99.

Journalize entries to record the following: c. The sale of the bonds on October 1.

Dristol Company acquired $56,000 Reynolds Company, 4.5% bonds on April 1, 2012, at par value. Interest is paid semiannually on April 1 and October 1. On October 1, 2012, Dristol sold$20,000 of the bonds for 99.

Journalize entries to record the following: b. The semiannual interest received on October 1.

Selected transactions completed by Everyday Products Inc. during the fiscal year ending December 31, 2012, were as follows:

b. Issued 2,000 shares of $100 par preferred 5% stock at$105, receiving cash.

Instructions

1. Journalize the selected transactions.
2. After all of the transactions for the year ended December 31, 2012, 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 Everyday Products Inc.

a. Prepare a multiple-step income statement for the year ended December 31, 2012, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 84,000 and preferred dividends were $85,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2012. c. Prepare a balance sheet in report form as of December 31, 2012.

$$\begin{aligned} &\textbf { Income statement data: }\\ &\begin{array}{lr} \hline \text { Advertising expense } & \$ 125,000 \\ \text { Cost of merchandise sold } & 3,650,000 \\ \text { Delivery expense } & 29,000 \\ \text { Depreciation expense-office buildings and equipment } & 26,000 \\ \text { Depreciation expense-store buildings and equipment } & 95,000 \\ \text { Dividend revenue } & 3,575 \\ \text { Gain on sale of investment } & 2,225 \\ \text { Income from Lifecare Co. investment } & 65,600 \\ \text { Income tax expense } & 128,500 \\ \text { Interest expense } & 19,000 \\ \text { Interest revenue } & 1,800 \\ \text { Miscellaneous administrative expense } & 7,500 \\ \text { Miscellaneous selling expense } & 13,750 \\ \text { Office rent expense } & 50,000 \\ \text { Office salaries expense } & 165,000 \\ \text { Office supplies expense } & 10,000 \\ \text { Sales } & 5,145,000 \\ \text { Sales commissions } & 182,000 \\ \text { Sales salaries expense } & 365,000 \\ \text { Store supplies expense } & 22,000 \end{array} \end{aligned}$$

$$\begin{aligned} &\textbf { Retained earnings and balance sheet data: }\\ &\begin{array}{lr} \hline \text { Accounts payable } & \$ 195,000 \\ \text { Accounts receivable } & 543,000 \\ \text { Accumulated depreciation–office buildings and equipment } & 1,580,000 \\ \text { Accumulated depreciation-store buildings and equipment } & 4,126,000 \\ \text { Allowance for doubtful accounts } & 8,150 \\ \text { Available-for-sale investments (at cost) } & 110,250 \\ \text { Bonds payable, 6\%, due 2022 } & 400,000 \\ \text { Cash } & 240,000 \\ \text { Common stock, \$25 par (400,000 shares authorized; } & \\ \quad 86,570 \text { shares issued, } 82,670 \text { outstanding) } & 2,164,250 \\ \text { Dividends: } & \\ \quad \text { Cash dividends for common stock } & 155,120 \\ \quad \text { Cash dividends for preferred stock } & 85,000 \\ \quad\text { Stock dividends for common stock } & 62,800 \\ \text { Goodwill } & 510,000 \\ \text { Income tax payable } & 40,000 \\ \text { Interest receivable } & 930 \\ \text { Investment in Lifecare Co. stock (equity method) } & 689,100 \\ \text { Investment in Nordic Wear Inc. bonds (long term) } & 62,000\\ \text { Merchandise inventory (December 31, 2012), at lower }\\ \quad\text { of cost (FIFO) or market } & \$780,000 \\ \text { Office buildings and equipment } & 4,320,000 \\ \text { Paid-in capital from sale of treasury stock } & 18,200 \\ \text { Paid-in capital in excess of par-common stock } & 842,000 \\ \text { Paid-in capital in excess of par-preferred stock } & 150,000 \\ \text { Preferred 5\% stock, \$100 par (30,000 shares authorized; } & \\ \quad 17,000 \text { shares issued) } & 1,700,000 \\ \text { Premium on bonds payable } & 19,000 \\ \text { Prepaid expenses } & 26,500 \\ \text { Retained earnings, January 1, 2012 } & 8,708,150 \\ \text { Store buildings and equipment } & 12,560,000 \\ \text { Treasury stock (3,900 shares of common stock at cost of } & \\ \quad \$ 35 \text { per share) } & 136,500 \\ \text { Unrealized gain (loss) on available-for-sale investments } & (17,750) \\ \text { Valuation allowance for available-for-sale investments } & (17,750)\\ \end{array} \end{aligned}$$

Journalize the entries to record the following selected bond investment transactions for Jennings Products: a. Purchased for cash $40,000 of Tech Grove, Inc. 6% bonds at 100 plus accrued interest of$850. b. Received first semiannual interest. c. Sold $15,000 of the bonds at 102 plus accrued interest of$150.

Dristol Company acquired $56,000 Reynolds Company, 4.5% bonds on April 1, 2012, at par value. Interest is paid semiannually on April 1 and October 1. On October 1, 2012, Dristol sold$20,000 of the bonds for 99.

Journalize entries to record the following: a. The initial acquisition of the bonds on April 1.

Journalize the entries to record the following selected bond investment transactions for Capital Trust:

a. Purchased for cash $250,000 of Belmont City 4% bonds at 100 plus accrued interest of$1,500. b. Received first semiannual interest. c. Sold $80,000 of the bonds at 97 plus accrued interest of$500.

Selected transactions completed by Everyday Products Inc. during the fiscal year ending December 31, 2012, were as follows:

a. Issued 12,500 shares of $25 par common stock at$32, receiving cash.

Instructions

1. Journalize the selected transactions.
2. After all of the transactions for the year ended December 31, 2012, 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 Everyday Products Inc.

a. Prepare a multiple-step income statement for the year ended December 31, 2012, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 84,000 and preferred dividends were $85,000. (Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 2012. c. Prepare a balance sheet in report form as of December 31, 2012.

$$\begin{aligned} &\textbf { Income statement data: }\\ &\begin{array}{lr} \hline \text { Advertising expense } & \$ 125,000 \\ \text { Cost of merchandise sold } & 3,650,000 \\ \text { Delivery expense } & 29,000 \\ \text { Depreciation expense-office buildings and equipment } & 26,000 \\ \text { Depreciation expense-store buildings and equipment } & 95,000 \\ \text { Dividend revenue } & 3,575 \\ \text { Gain on sale of investment } & 2,225 \\ \text { Income from Lifecare Co. investment } & 65,600 \\ \text { Income tax expense } & 128,500 \\ \text { Interest expense } & 19,000 \\ \text { Interest revenue } & 1,800 \\ \text { Miscellaneous administrative expense } & 7,500 \\ \text { Miscellaneous selling expense } & 13,750 \\ \text { Office rent expense } & 50,000 \\ \text { Office salaries expense } & 165,000 \\ \text { Office supplies expense } & 10,000 \\ \text { Sales } & 5,145,000 \\ \text { Sales commissions } & 182,000 \\ \text { Sales salaries expense } & 365,000 \\ \text { Store supplies expense } & 22,000 \end{array} \end{aligned}$$

$$\begin{aligned} &\textbf { Retained earnings and balance sheet data: }\\ &\begin{array}{lr} \hline \text { Accounts payable } & \$ 195,000 \\ \text { Accounts receivable } & 543,000 \\ \text { Accumulated depreciation–office buildings and equipment } & 1,580,000 \\ \text { Accumulated depreciation-store buildings and equipment } & 4,126,000 \\ \text { Allowance for doubtful accounts } & 8,150 \\ \text { Available-for-sale investments (at cost) } & 110,250 \\ \text { Bonds payable, 6\%, due 2022 } & 400,000 \\ \text { Cash } & 240,000 \\ \text { Common stock, \$25 par (400,000 shares authorized; } & \\ \quad 86,570 \text { shares issued, } 82,670 \text { outstanding) } & 2,164,250 \\ \text { Dividends: } & \\ \quad \text { Cash dividends for common stock } & 155,120 \\ \quad \text { Cash dividends for preferred stock } & 85,000 \\ \quad\text { Stock dividends for common stock } & 62,800 \\ \text { Goodwill } & 510,000 \\ \text { Income tax payable } & 40,000 \\ \text { Interest receivable } & 930 \\ \text { Investment in Lifecare Co. stock (equity method) } & 689,100 \\ \text { Investment in Nordic Wear Inc. bonds (long term) } & 62,000\\ \text { Merchandise inventory (December 31, 2012), at lower }\\ \quad\text { of cost (FIFO) or market } & \$780,000 \\ \text { Office buildings and equipment } & 4,320,000 \\ \text { Paid-in capital from sale of treasury stock } & 18,200 \\ \text { Paid-in capital in excess of par-common stock } & 842,000 \\ \text { Paid-in capital in excess of par-preferred stock } & 150,000 \\ \text { Preferred 5\% stock, \$100 par (30,000 shares authorized; } & \\ \quad 17,000 \text { shares issued) } & 1,700,000 \\ \text { Premium on bonds payable } & 19,000 \\ \text { Prepaid expenses } & 26,500 \\ \text { Retained earnings, January 1, 2012 } & 8,708,150 \\ \text { Store buildings and equipment } & 12,560,000 \\ \text { Treasury stock (3,900 shares of common stock at cost of } & \\ \quad \$ 35 \text { per share) } & 136,500 \\ \text { Unrealized gain (loss) on available-for-sale investments } & (17,750) \\ \text { Valuation allowance for available-for-sale investments } & (17,750)\\ \end{array} \end{aligned}$$

Oceanic Airways makes investments in available-for-sale securities. Selected income statement items for the years ended December 31, 2012 and 2013, plus selected items from comparative balance sheets, are as follows:

$$\begin{array}{c} \textbf{Oceanic Airways}\\ \textbf{Selected Income Statement Items}\\ \textbf{For the Years Ended December 31, 2012 and 2013.}\\ \end{array}$$

$$\begin{array}{lcc} \hline & \textbf{2012} & \textbf{2013} \\ \hline \text { Operating income } & \text { a. } & \text { g. } \\ \text { Gain (loss) from sale of investments } & \$4,000 & \$(8,000) \\ \text { Net income (loss) } & \text { b. } & (15,000) \end{array}$$

$$\begin{array}{c} \textbf{Oceanic Airways}\\ \textbf{Selected Income Statement Items}\\ \textbf{For the Years Ended December 31, 2012 and 2013.}\\ \end{array}$$

$$\begin{array}{lrrr} & \textbf{Dec. 31, 2011} & \textbf{Dec. 31, 2012}&\textbf{Dec. 31, 2013} \\ \hline\hspace{100pt}{\textbf{Assets}}\\ \text{Available-for-sale investment, at cost}&\$78,000&\$68,000&\$95,000\\ \text{Valuation allowance for available-for-sale investments}&6,000&9,000&h.\\ \hline \text{Available-for-sale investmentsm at fair value}&c.&e.&i.\\ \hline\hspace{100pt}{\textbf{Stockholders' Equity}}\\ \text{Unrealized gain (loss) on available-for-sale-investment}&d.&f.&(11,000)\\ \text{Retained earnings}&\$151,000&\$201,000&j.\\ \end{array}$$

There were no dividends Determine the missing lettered items.

Oceanic Airways makes investments in available-for-sale securities. Selected income statement items for the years ended December 31, 2012 and 2013, plus selected items from comparative balance sheets, are as follows:

$$\begin{array}{c} \textbf{Oceanic Airways}\\ \textbf{Selected Income Statement Items}\\ \textbf{For the Years Ended December 31, 2012 and 2013.}\\ \end{array}$$

$$\begin{array}{lcc} \hline & \textbf{2012} & \textbf{2013} \\ \hline \text { Operating income } & \text { a. } & \text { g. } \\ \text { Gain (loss) from sale of investments } & \$4,000 & \$(8,000) \\ \text { Net income (loss) } & \text { b. } & (15,000) \end{array}$$

$$\begin{array}{c} \textbf{Oceanic Airways}\\ \textbf{Selected Income Statement Items}\\ \textbf{For the Years Ended December 31, 2012 and 2013.}\\ \end{array}$$

$$\begin{array}{lrrr} & \textbf{Dec. 31, 2011} & \textbf{Dec. 31, 2012}&\textbf{Dec. 31, 2013} \\ \hline\hspace{100pt}{\textbf{Assets}}\\ \text{Available-for-sale investment, at cost}&\$78,000&\$68,000&\$95,000\\ \text{Valuation allowance for available-for-sale investments}&6,000&9,000&h.\\ \hline \text{Available-for-sale investmentsm at fair value}&c.&e.&i.\\ \hline\hspace{100pt}{\textbf{Stockholders' Equity}}\\ \text{Unrealized gain (loss) on available-for-sale-investment}&d.&f.&(11,000)\\ \text{Retained earnings}&\$151,000&\$201,000&j.\\ \end{array}$$

There were no dividend

Determine the missing lettered items.