Davenport University: ACCT202 Project - Part II Part II Financial Statements a. Panther Pacific 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 August 31, 2020. PART II is COMPLETELY separate from PARTI. 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 PARTI. Below is a brief overview of the required work to complete each worksheet. Students MUST follow the order below: 1. Complete IS August 2020 worksheet: Create a multi-step income statement 2. Complete Smnt of RE August 2020 worksheet: Create a statement of retained earnings 3. Complete BS August 2020 worksheet: Create a classified balance sheet 4. Complete adjusted trial balance worksheet: "changes" columns (only the identified cells). 5. Complete Statement of CF August 2020 worksheet: Create a statement of cash flows using the INDIRECT method. Panther Pacific Corporation For the Years Ended August 31, 2019 and 2020 To complete part 2 Follow IN ORDER: 1. Create multi-step Income Statement using the August 31, 2020 adjusted balances AND formatting information from IS tab. 2. Create statement of retained earnings using August 31, 2020 adjusted balances AND formatting information from stmnt of RE tab. 3. Create classified balance sheet using August 31, 2020 adjusted balances AND formatting information from BS tab. 4. Create statement of cash flows using the income statement, the changes" columns from below, and the additional notes to the right of August 31, 2020 adjusted trial balance columns. To complete the "changes" columns and the statement of cash flows: a. Input a formula in either the debit column OR the credit column to find the change in account balance from August 2019 to August 2020. b. Only complete the changes" cells that are outlined and have 2019 beginning balances and 2020 ending balances. Do not find changes in cells that are grayed out. c. Use the "changes" amounts to create the statement of cash flows. Amounts from the income statement will also be needed. d. Pay attention to statement of cash flows additional information columns below. These give hints. August 31, 2019 Adjusted Trial Balance C. CHANGES COLUMNS Used ONLY for Statement of cash flows Debit Credit August 31, 2020 Adjusted Trial Balance CE Acct. No. Account Title 100 Cash 583,730.00 347,600.00 102 Accounts Receivable, net 445,000.00 425,500.00 104 Merchandise Inventory, net 497,430.00 597,600.00 106 Office Supplies 1,250.00 6,500.00 107 Prepaid Expenses 12,500.00 10,500.00 120 Equity Investments - Trading 59,650.00 86,450.00 122 Investments - Held to Maturity 23,850.00 55,950.00 140 Land 1,000,000.00 1,500,000.00 145 Building 2,500,000.00 3,500,000.00 146 Accumulated Depreciation - Building 312,500.00 400,000.00 151 Equipment 170,000.00 205,000.00 152 Accumulated Depreciation - Equipment 85,000.00 96,000.00 153 Office Furniture 32,500.00 24,375.00 154 16.250,00 8,125.00 Accumulated Depreciation - Office Furniture Accounts Payable 201 356,000.00 393,420.00 202 Wages Payable 203 Interest Payable Dividends Payable 204 205 Unearned Rent 6,000.00 4,000.00 206 Customer Refunds Payable 35,600.00 29,000.00 250 Notes Payable - Long Term 12,000.00 212,000.00 251 Bonds Payable - Long Term 200,000.00 400,000.00 252 253 Premium on Bonds Payable Discount on Bonds Payable Mortgage (Warehouse) Payable 252 248,000.00 798,000.00 300 Common Stock $1 Par, 100.000 Authorbed: 81000 shares issued/Outstandine 65,500.00 81,000.00 301 Paid In Capital - Excess of Par Common Stock 1,177,250.00 1,177,250.00 330 Retained Earnings 2,351,400.00 2,849,810.00 331 Cash Dividends 200,000.00 340 Treasury Stock 38,000.00 88,000.00 500 Sales 3,457,984.00 3,700,000.00 600 Cost of Goods Sold 1,750,199.00 1,509,195.00 700 Wage Expense (hourly workers) 794,515.00 799,500.00 701 Salaries Expense (Exempt Staff) 89,000.00 229,000.00 702 Marketing Expense 65,000.00 75,000.00 703 Travel and Entertainment Expense 525.00 85,600.00 704 Bad Debt Expense 6,500.00 9,900.00 705 Property Tax Expense 111,200.00 150,000.00 706 Office Maintenance & Repair Expense 30,000.00 707 Legal Expenses 5,400.00 708 Insurance Expense 1,500.00 3,500.00 709 Miscellaneous Expense 48,985.00 53,925.00 710 Office Supplies Expense 400.00 735.00 711 Telecommunications Expense 10,000.00 712 Depreciation Expense - Building 62,500.00 87,500.00 713 Depreciation Expense - Equipment 17,000.00 6,000.00 714 Depreciation Expense - Office Furniture 3,250.00 1,625.00 800 Rent Income 12,000.00 802 Realized Gain - Equity Investment Securities - Trading 35,000.00 900 Interest Expense 5,000.00 61,000.00 902 Realized Loss - Held to Maturity Investments 4,000.00 30,250.00 Total 8,323,484.000 8,323,484.000 10,195,605.000 10,195,605.000 2,959,574.00 3,457,984.00 3,148,130.00 3,747,000.00 Net Income (Loss) 498,410.00 598,870.00 Panther Pacific Corporation Instructions: Using the August 31, 2020 adjusted trial balance information complete a multi-step income statement. Round all amounts to the nearest cent. Follow the below format notes, the rest is up to the student. Note that grades are also based on organization, formula use, and clarity of financial statement. Other requirements are: a. ONLY use accounts that have adjusted balances for August 31, 2020 b. Include proper report title c. Not all rows or columns need to be used. Formulas MUST be used when necessary. Use the following format (in order): 1. Input and list sales revenue, COGS, and calculate Gross Proft. 2. Input and list operating expenses - these are normal expenses incurred while selling marine parts. Subtotal these amounts. Operating expenses do NOT have to be separated into selling or general and administrative expense categories. 3. Calculate income from operations. 4. Input and list other revenues and gains amounts - revenue earned, but NOT part of normal operations and subtotal these amounts. 5. Input and list other expenses and losses amounts - expenses incurred, but NOT part of normal operations. Interest expense is always included in this category. Subtotal these amounts. 6. Calculate Net Income (Loss). Panther Pacific Corporation Instructions: Using the August 31, 2020 adjusted trial balance information AND income statement complete the statement of retained earnings. Round all amounts to the nearest cent. Follow the below format notes, the rest is up to the student. Note that grades are also based on organization, formula use, and clarity of financial statement. The other requirements are: a. ONLY use accounts that have adjusted balances for August 31, 2020 b. Include proper report title c. Not all rows or columns need to be used. Formulas MUST be used when necessary. Use the following format (in order): 1. Input beginning balance (this is listed in the August, 31 2020 adjusted trial balance columns). 2. List net income (loss) and cash dividends (if applicable). 3. Subtotal items from #2 to calculate net increase or decrease in retained earnings. 4. Calculate ending balance. Panther Pacific Corporation Instructions: Using the August 31, 2020 adjusted trial balance information AND the statement of retained earnings complete a classified balance sheet. Round all amounts to the nearest cent. Follow the below format notes, the rest is up to the student. Note that grades are also based on organization, formula use, and clarity of financial statement. The other requirements are: a. ONLY use accounts that have adjusted balances for August 31, 2020 b. Include proper report title c. Not all rows or columns need to be used. Formulas MUST be used when necessary. Use the following format (in order): 1. Input and list asset accounts in 3 categories: Current Assets; Property, Plant, and Equipment(PPE); Other Assets 2. Each category from #1 requires a subtotal EXCEPT for Other Assets 3. Calculate Total Assets 4. Input and list liability accounts in 2 categories: Current Liabilities and long-term Liabilities 5. Each category from #4 requires a subtotal 6. Calculate Total Liabilities 7. Input and list Stockholder's Equity Accounts including ending balance of retained earnings from statement of retained earnings. 8. Calculate Total Stockholder's Equity 9. Calculate Total Liabilities and Stockholder's Equity. This amount should equal Total Assets Panther Pacific Corporation Instructions: Using the "changes columns" and additional information from the adjusted trial balance tab AND the income statement, create a statement of cash flows following the INDIRECT METHOD. Round all amounts to the nearest cent. Follow the below tips The formatting is up to the student. Note that grades are based on organization, formula use, and clarity of financial statement. Other required items: la. Only use accounts that have changes or cash flows b. Include proper report title c. Not all rows or columns need to be used. Formulas MUST be used when necessary. TIPS PLEASE READ: 1. Correct selection of "Increase" or "Decrease" in accounts must be used as part of the label where applicable 2. Correct use of "cash paid" or "cash received" must be used where applicable 3. Subtotals for each section MUST be properly identified as cash "used in" or "provided by" 4. All changes utilize CASH. There is no GAIN or LOSS from sale of office furniture 5. Net change in cash + beginning cash balance (from a adjusted trial balance August 2019 column) must equal ending cash balance and be included at the bottom of this statement. Davenport University: ACCT202 Project - Part II Part II Financial Statements a. Panther Pacific 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 August 31, 2020. PART II is COMPLETELY separate from PARTI. 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 PARTI. Below is a brief overview of the required work to complete each worksheet. Students MUST follow the order below: 1. Complete IS August 2020 worksheet: Create a multi-step income statement 2. Complete Smnt of RE August 2020 worksheet: Create a statement of retained earnings 3. Complete BS August 2020 worksheet: Create a classified balance sheet 4. Complete adjusted trial balance worksheet: "changes" columns (only the identified cells). 5. Complete Statement of CF August 2020 worksheet: Create a statement of cash flows using the INDIRECT method. Panther Pacific Corporation For the Years Ended August 31, 2019 and 2020 To complete part 2 Follow IN ORDER: 1. Create multi-step Income Statement using the August 31, 2020 adjusted balances AND formatting information from IS tab. 2. Create statement of retained earnings using August 31, 2020 adjusted balances AND formatting information from stmnt of RE tab. 3. Create classified balance sheet using August 31, 2020 adjusted balances AND formatting information from BS tab. 4. Create statement of cash flows using the income statement, the changes" columns from below, and the additional notes to the right of August 31, 2020 adjusted trial balance columns. To complete the "changes" columns and the statement of cash flows: a. Input a formula in either the debit column OR the credit column to find the change in account balance from August 2019 to August 2020. b. Only complete the changes" cells that are outlined and have 2019 beginning balances and 2020 ending balances. Do not find changes in cells that are grayed out. c. Use the "changes" amounts to create the statement of cash flows. Amounts from the income statement will also be needed. d. Pay attention to statement of cash flows additional information columns below. These give hints. August 31, 2019 Adjusted Trial Balance C. CHANGES COLUMNS Used ONLY for Statement of cash flows Debit Credit August 31, 2020 Adjusted Trial Balance CE Acct. No. Account Title 100 Cash 583,730.00 347,600.00 102 Accounts Receivable, net 445,000.00 425,500.00 104 Merchandise Inventory, net 497,430.00 597,600.00 106 Office Supplies 1,250.00 6,500.00 107 Prepaid Expenses 12,500.00 10,500.00 120 Equity Investments - Trading 59,650.00 86,450.00 122 Investments - Held to Maturity 23,850.00 55,950.00 140 Land 1,000,000.00 1,500,000.00 145 Building 2,500,000.00 3,500,000.00 146 Accumulated Depreciation - Building 312,500.00 400,000.00 151 Equipment 170,000.00 205,000.00 152 Accumulated Depreciation - Equipment 85,000.00 96,000.00 153 Office Furniture 32,500.00 24,375.00 154 16.250,00 8,125.00 Accumulated Depreciation - Office Furniture Accounts Payable 201 356,000.00 393,420.00 202 Wages Payable 203 Interest Payable Dividends Payable 204 205 Unearned Rent 6,000.00 4,000.00 206 Customer Refunds Payable 35,600.00 29,000.00 250 Notes Payable - Long Term 12,000.00 212,000.00 251 Bonds Payable - Long Term 200,000.00 400,000.00 252 253 Premium on Bonds Payable Discount on Bonds Payable Mortgage (Warehouse) Payable 252 248,000.00 798,000.00 300 Common Stock $1 Par, 100.000 Authorbed: 81000 shares issued/Outstandine 65,500.00 81,000.00 301 Paid In Capital - Excess of Par Common Stock 1,177,250.00 1,177,250.00 330 Retained Earnings 2,351,400.00 2,849,810.00 331 Cash Dividends 200,000.00 340 Treasury Stock 38,000.00 88,000.00 500 Sales 3,457,984.00 3,700,000.00 600 Cost of Goods Sold 1,750,199.00 1,509,195.00 700 Wage Expense (hourly workers) 794,515.00 799,500.00 701 Salaries Expense (Exempt Staff) 89,000.00 229,000.00 702 Marketing Expense 65,000.00 75,000.00 703 Travel and Entertainment Expense 525.00 85,600.00 704 Bad Debt Expense 6,500.00 9,900.00 705 Property Tax Expense 111,200.00 150,000.00 706 Office Maintenance & Repair Expense 30,000.00 707 Legal Expenses 5,400.00 708 Insurance Expense 1,500.00 3,500.00 709 Miscellaneous Expense 48,985.00 53,925.00 710 Office Supplies Expense 400.00 735.00 711 Telecommunications Expense 10,000.00 712 Depreciation Expense - Building 62,500.00 87,500.00 713 Depreciation Expense - Equipment 17,000.00 6,000.00 714 Depreciation Expense - Office Furniture 3,250.00 1,625.00 800 Rent Income 12,000.00 802 Realized Gain - Equity Investment Securities - Trading 35,000.00 900 Interest Expense 5,000.00 61,000.00 902 Realized Loss - Held to Maturity Investments 4,000.00 30,250.00 Total 8,323,484.000 8,323,484.000 10,195,605.000 10,195,605.000 2,959,574.00 3,457,984.00 3,148,130.00 3,747,000.00 Net Income (Loss) 498,410.00 598,870.00 Panther Pacific Corporation Instructions: Using the August 31, 2020 adjusted trial balance information complete a multi-step income statement. Round all amounts to the nearest cent. Follow the below format notes, the rest is up to the student. Note that grades are also based on organization, formula use, and clarity of financial statement. Other requirements are: a. ONLY use accounts that have adjusted balances for August 31, 2020 b. Include proper report title c. Not all rows or columns need to be used. Formulas MUST be used when necessary. Use the following format (in order): 1. Input and list sales revenue, COGS, and calculate Gross Proft. 2. Input and list operating expenses - these are normal expenses incurred while selling marine parts. Subtotal these amounts. Operating expenses do NOT have to be separated into selling or general and administrative expense categories. 3. Calculate income from operations. 4. Input and list other revenues and gains amounts - revenue earned, but NOT part of normal operations and subtotal these amounts. 5. Input and list other expenses and losses amounts - expenses incurred, but NOT part of normal operations. Interest expense is always included in this category. Subtotal these amounts. 6. Calculate Net Income (Loss). Panther Pacific Corporation Instructions: Using the August 31, 2020 adjusted trial balance information AND income statement complete the statement of retained earnings. Round all amounts to the nearest cent. Follow the below format notes, the rest is up to the student. Note that grades are also based on organization, formula use, and clarity of financial statement. The other requirements are: a. ONLY use accounts that have adjusted balances for August 31, 2020 b. Include proper report title c. Not all rows or columns need to be used. Formulas MUST be used when necessary. Use the following format (in order): 1. Input beginning balance (this is listed in the August, 31 2020 adjusted trial balance columns). 2. List net income (loss) and cash dividends (if applicable). 3. Subtotal items from #2 to calculate net increase or decrease in retained earnings. 4. Calculate ending balance. Panther Pacific Corporation Instructions: Using the August 31, 2020 adjusted trial balance information AND the statement of retained earnings complete a classified balance sheet. Round all amounts to the nearest cent. Follow the below format notes, the rest is up to the student. Note that grades are also based on organization, formula use, and clarity of financial statement. The other requirements are: a. ONLY use accounts that have adjusted balances for August 31, 2020 b. Include proper report title c. Not all rows or columns need to be used. Formulas MUST be used when necessary. Use the following format (in order): 1. Input and list asset accounts in 3 categories: Current Assets; Property, Plant, and Equipment(PPE); Other Assets 2. Each category from #1 requires a subtotal EXCEPT for Other Assets 3. Calculate Total Assets 4. Input and list liability accounts in 2 categories: Current Liabilities and long-term Liabilities 5. Each category from #4 requires a subtotal 6. Calculate Total Liabilities 7. Input and list Stockholder's Equity Accounts including ending balance of retained earnings from statement of retained earnings. 8. Calculate Total Stockholder's Equity 9. Calculate Total Liabilities and Stockholder's Equity. This amount should equal Total Assets Panther Pacific Corporation Instructions: Using the "changes columns" and additional information from the adjusted trial balance tab AND the income statement, create a statement of cash flows following the INDIRECT METHOD. Round all amounts to the nearest cent. Follow the below tips The formatting is up to the student. Note that grades are based on organization, formula use, and clarity of financial statement. Other required items: la. Only use accounts that have changes or cash flows b. Include proper report title c. Not all rows or columns need to be used. Formulas MUST be used when necessary. TIPS PLEASE READ: 1. Correct selection of "Increase" or "Decrease" in accounts must be used as part of the label where applicable 2. Correct use of "cash paid" or "cash received" must be used where applicable 3. Subtotals for each section MUST be properly identified as cash "used in" or "provided by" 4. All changes utilize CASH. There is no GAIN or LOSS from sale of office furniture 5. Net change in cash + beginning cash balance (from a adjusted trial balance August 2019 column) must equal ending cash balance and be included at the bottom of this statement
