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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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