Question

Panther Marine
Instructions: Using the "June 30, 2017 adjusted trial balance" information complete a multistep income statement. Expenses do NOT have to be organized into general and administrative or selling categories (use categories listed below). 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. Separate expenses between operating and other expenses/losses
d. Separate revenue between sales and other revenues/gains
e. Gross profit and income from operations must be included
f. Net income (loss) must be the last item on this financial statement.
June 30, 2017 Adjusted Trial Balance Acct. No. Account Title Dr. Cr 100 Cash       378,989.09 102 Accounts Receivable       755,400.00 103 Allowance for Doubtful Accounts         19,816.89 104 Merchandise Inventory       346,350.00 105 Estimated Returns Inventory         43,541.00 106 Office Supplies          2,465.00 107 Prepaid Insurance         10,500.00 120 Investments - Trading         60,000.00 121 Investments - Available for Sale         26,450.00 122 Investments - Held to Maturity         40,005.01 123 Valuation Allowance         35,000.00 140 Land    2,505,555.01 145 Building    1,843,723.48 146 Accumulated Depreciation - Building    1,500,000.00 151 Equipment         61,000.00 152 Accumulated Depreciation - Equipment         30,000.00 153 Office Furniture         22,500.00 154 Accumulated Depreciation - Office Furniture          4,500.00 201 Accounts Payable       904,850.00 202 Wages Payable                    -   203 Interest Payable                    -   204 Dividends Payable                    -   205 Unearned Rent          4,000.00 206 Customer Refunds Payable         29,027.60 250 Notes Payable       212,000.00 251 Bonds Payable       400,000.00 252 Premium on Bonds Payable                    -   253 Discount on Bonds Payable                    -   252 Mortgage (Warehouse) Payable       198,000.00 300 Common Stock, $1 Par, 100,000 Authorized; 65,500 shares Issued/Outstanding         65,500.00 301 Paid In Capital - Excess of Par       510,544.99 330 Retained Earnings    2,140,014.12 331 Cash Dividends       100,000.00 340 Treasury Stock         18,000.00 341 Unrealized (Gain) Loss Available for Sale Securities                    -                      -   500 Sales    1,468,529.98 600 Cost of Goods Sold       482,159.00 700 Wage Expense (hourly workers)       399,500.00 701 Salaries Expense (Exempt Staff)       129,000.00 702 Marketing Expense         75,000.00 703 Travel and Entertainment Expense             925.00 704 Bad Debt Expense          9,816.88 705 Property Tax Expense                    -   706 Office Maintenance & Repair Expense                    -   707 Legal Expenses          5,400.00 708 Insurance Expense          3,500.00 709 Utilities Expense         68,624.12 710 Office Supplies Expense             735.00 711 Telecommunications Expense             100.00 712 Depreciation Expense - Building       100,000.00 713 Depreciation Expense - Equipment          2,000.00 714 Depreciation Expense - Office Furniture          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         12,500.00 901 Unrealized Loss - Trading Securities         68,000.00 902 Realized Loss - Investment Securities          9,000.00 Total 7,581,738.590 7,581,738.590    1,367,260.00    1,528,484.99 Net Income (Loss)       161,224.99

Answer 1

Panther Marine
Multi-step Income Statement
For year ending June 30, 2017
Sales		$1468529.98
Cost of Goods Sold		($482159)
Gross profit		$986370.98
Operating Expenses;
Wage Expense	$399500
Salaries Expense	$129000
Marketing Expense	$75000
Travel and Entertainment Expense	$925
Bad Debt Expense	$9816.88
Legal Expenses	$5400
Insurance Expense	$3500
Utilities Expense	$68624.12
Office Supplies Expense	$735
Telecommunications Expense	$100
Depreciation Expense - Building	$100000
Depreciation Expense - Equipment	$2000
Depreciation Expense - Office Furniture	$1000
Total operating expenses		($795601)
Operating income		$190769.98
Non-operating or other items;
Rent Income	$2000
Realized Gain - Investment Securities	$51955.01
Interest Expense	($12500)
Realized Loss - Investment Securities	($9000)
Total non-operating or other items		$32455.01
Net Income (Loss)		$223224.99

Working Note;

1. unrealized gain or loss is not reported in the income statement.