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Complete statement of retained earnings (bottom of post) using information from the adjusted trial balance and income statement that are completed (Below). PLEASE check work
Complete statement of retained earnings (bottom of post) using information from the adjusted trial balance and income statement that are completed (Below).
PLEASE check work on adjusted trial balance "changes" and the income statement as well. Tried my best here but may be some errors.
Trial Balance | Changes | Trial Balance | |||||||
Acct. No. | Account Title | Debit | Credit | Debit | Credit | Debit | Credit | ||
100 | Cash | 562,480.00 | 78,535.90 | 483,944.10 | |||||
102 | Accounts Receivable | 822,633.00 | 67,223.00 | 755,400.00 | |||||
103 | Allowance for Doubtful Accounts | 25,643.00 | 5,826.11 | 19,816.89 | |||||
104 | Merchandise Inventory | 440,980.00 | 440,980.00 | ||||||
105 | Estimated Returns Inventory | 56,450.00 | 56,450.00 | ||||||
106 | Office Supplies | 1,250.00 | 1,250.00 | ||||||
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 | 1,753,367.63 | 247,232.37 | 2,000,600.00 | |||||
145 | Building | 1,893,723.48 | 50,000.00 | 1,843,723.48 | |||||
146 | Accumulated Depreciation - Building | 1,400,000.00 | 100,000.00 | 1,500,000.00 | |||||
151 | Equipment | 51,000.00 | 10,000.00 | 61,000.00 | |||||
152 | Accumulated Depreciation - Equipment | 28,000.00 | 2,000.00 | 30,000.00 | |||||
153 | Office Furniture | 32,500.00 | 10,000.00 | 22,500.00 | |||||
154 | Accumulated Depreciation - Office Furniture | 3,500.00 | 1,000.00 | 4,500.00 | |||||
201 | Accounts Payable | 1,156,000.00 | 1,156,000.00 | ||||||
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 | 356,000.00 | ||||||
330 | Retained Earnings | 2,397,969.09 | 2,397,969.09 | ||||||
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 | 1,358,940.00 | ||||||
600 | Cost of Goods Sold | 450,199.00 | 582,159.00 | ||||||
700 | Wage Expense (hourly workers) | 489,560.00 | 599,500.00 | ||||||
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 | 7,061,374.090 | 7,061,374.090 | 7,588,062.590 | 7,826,708.590 |
Multistep Income Statement | ||
Sales | $1,358,940.00 | |
Less: Cost of Goods Sold | $582,519.00 | |
Gross Margin | $776,421.00 | |
Less: Selling & Administrative expenses | ||
Wage Expense | $599,500.00 | |
Salaries Expense | $129,000.00 | |
Marketing Expense | $75,000.00 | |
Travel and Entertainment Expense | $925.00 | |
Bad Debt Expense | $9,816.88 | |
Legal Expenses | $5,400.00 | |
Insurance Expense | $3,500.00 | |
Utilities Expense | $68,624.12 | |
Office Supplies Expense | $735.00 | |
Telecommunications Expense | $100.00 | |
Depreciation Expense - Building | $100,000.00 | |
Depreciation Expense - Equipment | $2,000.00 | |
Depreciation Expense - Office Furniture | $1,000.00 | |
Total Selling & Administrative expenses | $995,601.00 | |
Other Income/(expenses) | ||
Income from Operations | -$219,180.00 | |
Add: Other Revenue and Gains | ||
Rent Income | $2,000.00 | |
Unrealized Gain - Trading Securities | $6,000.00 | |
Realized Gain - Investment Securities | $51,955.01 | |
Total Other Revenue and Gains | $59,955.01 | |
Less: Other Expenses & losses | ||
Interest Expense | $12,500.00 | |
Unrealized Loss - Trading Securities | $68,000.00 | |
Realized Loss - Investment Securities | $9,000.00 | |
Total Other Expenses & losses | $89,500.00 | |
Net Income (Loss) | -$248,725.00 |
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) | ||
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