Question
I am trying to complete the statement of retained earnings based on the adjusted trial balance. I noticed that the ending Dr balance for June
I am trying to complete the statement of retained earnings based on the adjusted trial balance. I noticed that the ending Dr balance for June 30, 2017 is less than the ending Cr balance for June 30, 2017. The difference is 238, 646. I am wondering if this is indicative as to what the amount of net income (loss) should be on the income statement and/or if it is what the amount should be on the net decrease in retained earnings on the statement of retained earnings? I am hoping someone can check my work regarding the items recorded in the changes column on the adjusted trial balance, the format and items recorded on the income statement as well as the retained earnings statement. I have included all of the items below. Thank you!
The instructor did state that you should be able to check your figures/work by:
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. |
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 identified "changes" columns MUST be completed in order to complete the statement of cash flows (DO NOT COMPLETE greyed out cells). USE the June 30, 2017 adjusted trial balance columns to create the financial statements. | |||||||
June 30, 2016 | June 30, 2017 | ||||||
Adjusted | Adjusted | ||||||
June 30, 2016 Trial Balance | Changes | June 30, 2017 Trial Balance | |||||
Acct. No. | Account Title | Dr. | Cr. | Debit | Credit | Dr. | Cr |
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 | |||
Net Income (Loss) | |||||||
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 Corporation | ||
Income Statement | ||
For the Year Ended June 30, 2017 | ||
Sales | 1,358,940.00 | |
Cost of Goods Sold | (582,159.00) | |
Gross Profit | 776,781.00 | |
Other Revenues/Gains | ||
Rent Income | 2,000.00 | |
Unrealized Gain - Trading Securities | 6,000.00 | |
Realized Gain - Investment Securities | 51955.01 | |
Total Other Revenues/Gains | 59,955.01 | |
Income from Operations | 836,736.01 | |
Operating Expenses | ||
Wages Expense (Hourly Workers) | (599,500.00) | |
Salaries Expense (Exempt Staff) | (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 Operating Expenses | (995,601.00) | |
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) | |
Total Operating Income (Loss) | (1,085,101.00) | |
Net Income (Loss) | (248,364.99) |
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 Corporation | ||
Retained Earnings Statement | ||
For the Year Ended June 30, 2017 | ||
Beginning Balance, Retained Earnings July 1, 2016 | 2,397,969.09 | |
Less: Net Income (Loss) | (248,364.99) | |
Less: Cash Dividends | (100,000.00) | |
2,049,604.10 | ||
Net Decrease in Retained Earnings | (348,365.00) | |
Ending Balance, Retained Earnings June 30, 2017 | 2,049,604.10 | |
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