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 PART I. 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 earings 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. Additional Notes for Statement of Cash Flows August 31, 2019 Adjusted Trial Balance Cr. CHANGES COLUMNS Used ONLY for Statement of cash flows Debit Credit August 31, 2020 Adjusted Trial Balance Cr Acct. No. Account Title Change in cash not required, but should match net increase decrease in cash on smnt of cash flows 100 Cash 583,730.00 347,800.00 102 Accounts Receivable.net 445,000.00 125,500.00 104 Merchandise Inventory, net 497 430.00 597,600.00 106 office Supplies 1,250.00 6,500.00 107 12,500.00 10.500,00 120 Prepaid Expenses Equity Investments Trading Investments - Held to Maturity 59,850.00 28,450.00 122 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 Use depreciation expense from income statement 151 Equipment 170,000.00 205,000.00 152 Accumulated Depreciation - Equipment 85,000.00 96,000.00 Vse depreciation expense from Income statement 163 Office Furniture 32,500.00 24,375.00 154 16.250.00 8,125.00 Use depreciation expense from income statement Accumulated Depreciation - Office Furniture Accounts Payable 201 356,000.00 393,420,00 202 203 Wages Payable Interest Payable Dividends Payable 204 206 Unearned Rent 6,000.00 4,000.00 216 Customer Refunds Payable 35,600,00 29,000.00 280 12,000.00 212.000.00 Notes Payable - Long Term Bonds Payable - Long Term 251 200,000.00 400,000.00 262 Premium on Bonds Payable 253 Discount on Bonde Payable 253 Discount on Bonds Payable Mortgage (Warehouse) Payable 252 248,000.00 798,000,00 300 Common Stock $1 Par, 100,000 Authorbed: 81,000 shares Issued/Outstanding 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 1,509,195.00 700 794,515.00 799,500.00 Wage Expense (hourly workers) Salaries Expense (Exempt Staff) 701 89,000.00 229,000.00 702 65,000.00 75,000.00 Marketing Expense Travel and Entertainment Expense 703 525.00 85,600.00 704 Bad Debt Expense 6,500.00 9,900.00 705 111,200.00 150,000.00 Property Tax Expense Office Maintenance & Repair Expense 706 30,000.00 707 Legal Expenses 5,400.00 708 Insurance Expense 1.500.00 3,500.00 709 Miscellaneous Expense 48.985.00 53,925.00 710 400.00 735.00 711 10,000.00 712 Office Supplies Expense Telecommunications Expense Depreciation Expense - Building Depreciation Expense - Equipment Depreciation Expense - Office Furniture 62,500.00 87,500.00 713 17,000.00 6,000.00 714 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 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 PART I. 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 earings 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. Additional Notes for Statement of Cash Flows August 31, 2019 Adjusted Trial Balance Cr. CHANGES COLUMNS Used ONLY for Statement of cash flows Debit Credit August 31, 2020 Adjusted Trial Balance Cr Acct. No. Account Title Change in cash not required, but should match net increase decrease in cash on smnt of cash flows 100 Cash 583,730.00 347,800.00 102 Accounts Receivable.net 445,000.00 125,500.00 104 Merchandise Inventory, net 497 430.00 597,600.00 106 office Supplies 1,250.00 6,500.00 107 12,500.00 10.500,00 120 Prepaid Expenses Equity Investments Trading Investments - Held to Maturity 59,850.00 28,450.00 122 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 Use depreciation expense from income statement 151 Equipment 170,000.00 205,000.00 152 Accumulated Depreciation - Equipment 85,000.00 96,000.00 Vse depreciation expense from Income statement 163 Office Furniture 32,500.00 24,375.00 154 16.250.00 8,125.00 Use depreciation expense from income statement Accumulated Depreciation - Office Furniture Accounts Payable 201 356,000.00 393,420,00 202 203 Wages Payable Interest Payable Dividends Payable 204 206 Unearned Rent 6,000.00 4,000.00 216 Customer Refunds Payable 35,600,00 29,000.00 280 12,000.00 212.000.00 Notes Payable - Long Term Bonds Payable - Long Term 251 200,000.00 400,000.00 262 Premium on Bonds Payable 253 Discount on Bonde Payable 253 Discount on Bonds Payable Mortgage (Warehouse) Payable 252 248,000.00 798,000,00 300 Common Stock $1 Par, 100,000 Authorbed: 81,000 shares Issued/Outstanding 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 1,509,195.00 700 794,515.00 799,500.00 Wage Expense (hourly workers) Salaries Expense (Exempt Staff) 701 89,000.00 229,000.00 702 65,000.00 75,000.00 Marketing Expense Travel and Entertainment Expense 703 525.00 85,600.00 704 Bad Debt Expense 6,500.00 9,900.00 705 111,200.00 150,000.00 Property Tax Expense Office Maintenance & Repair Expense 706 30,000.00 707 Legal Expenses 5,400.00 708 Insurance Expense 1.500.00 3,500.00 709 Miscellaneous Expense 48.985.00 53,925.00 710 400.00 735.00 711 10,000.00 712 Office Supplies Expense Telecommunications Expense Depreciation Expense - Building Depreciation Expense - Equipment Depreciation Expense - Office Furniture 62,500.00 87,500.00 713 17,000.00 6,000.00 714 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