Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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.

Panther Marine Corporation
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
Total

Difference

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.

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)

Panther Marine
Instructions: Using the "June 30, 2017 adjusted trial balance" information AND statement of retained earnings complete a classified balance sheet. 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. Classified asset categories: current assets; Property, Plant, and Equipment; other assets
d. Classified liability categories: current liabilities and long-term liabilities. ASSUME note payable is long-term.

e. Stockholder's Equity MUST include ending retained earnings balance

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
-

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Auditing And Assurance Services

Authors: Philomena Leung, Paul Coram, Barry J. Cooper, Peter Richardson

6th Edition

1118615247, 9781118615249

More Books

Students also viewed these Accounting questions