Question

a. Panther Marine mangement is very impressed with the work you have done so far filling in for the regular accountant. They have reached there fiscal year end and now need your help creating the financial statements for the fiscal year ended June 30, 2017.

b. Check figures are NOT available for part II. Financial statements have the following built-in check figures:

1. Balance sheet total assets must equal total liabilities and stockholder's equity

2. Statement of cash flows net change in cash MUST equal the change in cash from "changes" columns on adjusted trial balance sheet.

c. Each worksheet within this workbook contains further instructions. READ ALL INSTRUCTIONS BEFORE COMPLETING EACH WORKSHEET. PART II IS COMPLETELY INDEPENDENT OF PART I. Below is a brief overview of the required work to complete each worksheet. Students MUST follow the order below:

1. Complete adjusted trial balance worksheet: "changes" columns (only the identifed cells).

2. Complete IS June 2017 worksheet: Create a mult-step income statement

3. Complete Smnt of RE June 2017 worksheet: Create a statement of retained earnings

4. Complete BS June 2017 worksheet: Create a classified balance sheet

5. Complete Statement of CF June 2017 worksheet: create a statement of cash flows using the INDIRECT method . For the Years Ended June 30, 2016 and 2017 Instructions: Below are the adjusted trial balances for the years ended June 30, 2016 and 2017. The outlined cells in the changes columns MUST be completed for the statement of cash flows. Use formulas to find the debit OR credit changes in identfied cells. USE the June 30, 2017 adjusted trial balance columns to create the financial statements. DO NOT COMPLETE CELLS THAT ARE GRAYED OUT. 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             (6,654.40)             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

a. Panther Marine mangement is very impressed with the work you have done so far filling in for the regular accountant. They have reached there fiscal year end and now need your help creating the financial statements for the fiscal year ended June 30, 2017.

b. Check figures are NOT available for part II. Financial statements have the following built-in check figures:

1. Balance sheet total assets must equal total liabilities and stockholder's equity

2. Statement of cash flows net change in cash MUST equal the change in cash from "changes" columns on adjusted trial balance sheet.

c. Each worksheet within this workbook contains further instructions. READ ALL INSTRUCTIONS BEFORE COMPLETING EACH WORKSHEET. PART II IS COMPLETELY INDEPENDENT OF PART I. Below is a brief overview of the required work to complete each worksheet. Students MUST follow the order below:

1. Complete adjusted trial balance worksheet: "changes" columns (only the identifed cells).

2. Complete IS June 2017 worksheet: Create a mult-step income statement

3. Complete Smnt of RE June 2017 worksheet: Create a statement of retained earnings

4. Complete BS June 2017 worksheet: Create a classified balance sheet

5. Complete Statement of CF June 2017 worksheet: create a statement of cash flows using the INDIRECT method.

v

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. Panther Marine Income Statement For the Year Ended June 30,2017 Sales Cost of merchandise sold Gross Profit Operating expenses: Selling expenses Salaries expenses Marketing expenses Depreciation Expense - Equiment Travel and Entertainment Expense Administrative Expenses: Instructions: Using the "changes columns" from the adjusted trial balance worksheet AND the below additional information to create a statement of cash flows using the INDIRECT METHOD. 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. Other required items and additional information are: a. Only use accounts that have changes or cash flows b. Proper report title c. Net change in cash, beginning cash balance, ending cash balance and cash per balance sheet MUST be included d. All cash flow activities must be identified, organized, totaled, and clearly labeled e. Assume all investment changes utilized only cash f. Valuation allowance change is an investing activity g. Assume all financing changes utilized only cash h. Panther Marine considers bonds and notes as financing activities Instructions: Using the "changes columns" from the adjusted trial balance worksheet AND the below additional information to create a statement of cash flows using the INDIRECT METHOD. 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. Other required items and additional information are: a. Only use accounts that have changes or cash flows b. Proper report title c. Net change in cash, beginning cash balance, ending cash balance and cash per balance sheet MUST be included d. All cash flow activities must be identified, organized, totaled, and clearly labeled e. Assume all investment changes utilized only cash f. Valuation allowance change is an investing activity g. Assume all financing changes utilized only cash h. Panther Marine considers bonds and notes as financing activities Instructions: Using the "changes columns" from the adjusted trial balance worksheet AND the below additional information to create a statement of cash flows using the INDIRECT METHOD. 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. Other required items and additional information are: a. Only use accounts that have changes or cash flows b. Proper report title c. Net change in cash, beginning cash balance, ending cash balance and cash per balance sheet MUST be included d. All cash flow activities must be identified, organized, totaled, and clearly labeled e. Assume all investment changes utilized only cash f. Valuation allowance change is an investing activity g. Assume all financing changes utilized only cash h. Panther Marine considers bonds and notes as financing activities

Answer 1