80.2K

Verified Solution

Link Copied!

Panther Marine
Instructions: Using the "June 30, 2017 adjusted trial balance" information AND income statement complete the statement of retained earnings. Round all amounts to the nearest cent. The rest of the formatting is up to the student. Note that grades are based on organization and clarity of this financial statement. The only other requirements are the following items:
a. ONLY use accounts that have adjusted balances
b. Proper report title
c. Net increase or decrease in retained earnings
d. Beginning balance July 1, 2016 (Hint: this is not the same as June 30, 2016 balance)
e. Cash dividends and net income (loss) June 30, 2016 June 30, 2017 Adjusted Adjusted Trial Balance Changes Trial Balance Acct. No. Account Title Dr. Cr. Debit Credit Dr. Cr 100 Cash 562,480.00 183,490.91 378,989.09 102 Accounts Receivable 822,633.00 67,233.00 755,400.00 103 Allowance for Doubtful Accounts 25,643.00 5,826.11 19,816.89 104 Merchandise Inventory 440,980.00 94,630.00 346,350.00 105 Estimated Returns Inventory 56,450.00 12,909.00 43,541.00 106 Office Supplies 1,250.00 1,215.00 2,465.00 107 Prepaid Insurance 12,500.00 2,000.00 10,500.00 120 Investments - Trading 45,000.00 15,000.00 60,000.00 121 Investments - Available for Sale 14,650.00 11,800.00 26,450.00 122 Investments - Held to Maturity 23,850.00 16,155.01 40,005.01 123 Valuation Allowance 27,000.00 62,000.00 35,000.00 140 Land 1,743,777.65 761,777.36 2,505,555.01 145 Building 1,893,723.48 50,000.00 1,843,723.48 146 Accumulated Depreciation - Building 1,504,955.01 1,500,000.00 151 Equipment 51,000.00 10,000.00 61,000.00 152 Accumulated Depreciation - Equipment 28,000.00 30,000.00 153 Office Furniture 32,500.00 10,000.00 22,500.00 154 Accumulated Depreciation - Office Furniture 3,500.00 4,500.00 201 Accounts Payable 1,156,000.00 251,150.00 904,850.00 202 Wages Payable - - 203 Interest Payable - - 204 Dividends Payable - - 205 Unearned Rent 6,000.00 2,000.00 4,000.00 206 Customer Refunds Payable 35,682.00 6,654.60 29,027.60 250 Notes Payable 12,000.00 200,000.00 212,000.00 251 Bonds Payable 200,000.00 200,000.00 400,000.00 252 Premium on Bonds Payable - - 253 Discount on Bonds Payable - - 252 Mortgage (Warehouse) Payable 248,000.00 50,000.00 198,000.00 300 Common Stock, $1 Par, 100,000 Authorized; 65,500 shares Issued/Outstanding 50,000.00 15,500.00 65,500.00 301 Paid In Capital - Excess of Par 356,000.00 154,544.99 510,544.99 330 Retained Earnings 2,388,379.11 2,140,014.12 331 Cash Dividends - 100,000.00 100,000.00 340 Treasury Stock 38,000.00 20,000.00 18,000.00 341 Unrealized (Gain) Loss Available for Sale Securities - - - - 500 Sales 1,142,580.00 1,468,529.98 600 Cost of Goods Sold 450,199.00 482,159.00 700 Wage Expense (hourly workers) 594,515.01 399,500.00 701 Salaries Expense (Exempt Staff) 89,000.00 129,000.00 702 Marketing Expense 65,000.00 75,000.00 703 Travel and Entertainment Expense 525.00 925.00 704 Bad Debt Expense 5,816.88 9,816.88 705 Property Tax Expense 111,104.10 - 706 Office Maintenance & Repair Expense - - 707 Legal Expenses - 5,400.00 708 Insurance Expense 1,500.00 3,500.00 709 Utilities Expense 48,985.00 68,624.12 710 Office Supplies Expense 400.00 735.00 711 Telecommunications Expense - 100.00 712 Depreciation Expense - Building - 100,000.00 713 Depreciation Expense - Equipment 4,000.00 2,000.00 714 Depreciation Expense - Office Furniture 500.00 1,000.00 800 Rent Income - 2,000.00 801 Unrealized Gain - Trading Securities - 6,000.00 802 Realized Gain - Investment Securities - 51,955.01 900 Interest Expense 5,400.00 12,500.00 901 Unrealized Loss - Trading Securities 10,000.00 68,000.00 902 Realized Loss - Investment Securities 4,000.00 9,000.00 Total 7,156,739.120 7,156,739.120 7,581,738.590 7,581,738.590 1,390,944.99 1,142,580.00 1,367,260.00 1,528,484.99 Net Income (Loss) (248,364.99) 161,224.99

Panther Marine
Multi-step Income Statement
For year ending June 30, 2017
Sales		$1,468,529.98
Cost of Goods Sold		($482,159)
Gross profit		$986,370.98
Operating Expenses;
Wage Expense	$399,500
Salaries Expense	$129,000
Marketing Expense	$75,000
Travel and Entertainment Expense	$925
Bad Debt Expense	$9,816.88
Legal Expenses	$5,400
Insurance Expense	$3,500
Utilities Expense	$68,624.12
Office Supplies Expense	$735
Telecommunications Expense	$100
Depreciation Expense - Building	$100,000
Depreciation Expense - Equipment	$2,000
Depreciation Expense - Office Furniture	$1,000
Total operating expenses		($795,601)
Operating income		$190,769.98
Non-operating or other items;
Rent Income	$2,000
Realized Gain - Investment Securities	$51,955.01
Interest Expense	($12,500)
Realized Loss - Investment Securities	($9,000)
Total non-operating or other items		$32,455.01
Net Income (Loss)		$223,224.99

Answer & Explanation Solved by verified expert

See Answer