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The Panama Pajama Company began operations on January 1, 2015, and is now in its third year of operations. The adjusted trial balance as of
The Panama Pajama Company began operations on January 1, 2015, and is now in its third year of operations. | ||||||||
The adjusted trial balance as of December 31, 2018 appears below, along with prior year balance sheet data and some additional transaction data for 2018. | ||||||||
THE PANAMA PAJAMA COMPANY | ||||||||
Adjusted Trial Balance | ||||||||
12/31/18 | ||||||||
2018 | 2017 | |||||||
Account Title | Adjusted Trial Balance | Balance Sheet Info | ||||||
Debit | Credit | Debit | Credit | |||||
Cash | $ 138,000 | $ 35,600 | ||||||
Accounts Receivable | 12,000 | 11,000 | ||||||
Inventory | 4,400 | 5,600 | ||||||
Office Equipment | 26,000 | 20,000 | ||||||
Machinery & Tools | 59,000 | 21,000 | ||||||
Accumulated DepreciationPlant Assets | $ 8,600 | 6,000 | ||||||
Accounts Payable | 12,200 | 9,800 | ||||||
Note PayableShort Term | 10,000 | 15,500 | ||||||
Note PayableLong Term | 33,000 | - | ||||||
Common Stock, $10 par | 150,000 | 50,000 | ||||||
Retained Earnings | 11,900 | 11,900 | ||||||
Dividends | 1,000 | |||||||
Sales Revenue | 31,700 | - | ||||||
Cost of Goods Sold | 11,600 | |||||||
Rent Expense | 2,000 | |||||||
Advertising Expense | 800 | |||||||
Depreciation Expense | 2,600 | |||||||
$ 257,400 | $ 257,400 | |||||||
Transaction Data for 2018 (Note, these transactions were included in the trial balance numbers above.) | ||||||||
Cash paid for purchase of office equipment | $ 6,000 | |||||||
Cash paid for purchase of tools | 5,000 | |||||||
Acquisition of Machinery with Notes PayableLong-term | 33,000 | |||||||
Cash payment of dividends | 1,000 | |||||||
Cash receipt from issuance of 10,000 shares of common stock | 100,000 | |||||||
Requirements: (See sheet tabs at bottom. Use each sheet for the following requirements.) | ||||||||
Use Excel Skills in completing these requirements. You must use formulas and functions, cell references, and professional formatting. | ||||||||
1. | Prepare the Panama Pajama Company multi-step income statement for the year ended December 31, 2018. Include the EPS at the bottom. | |||||||
Also include a vertical analysis column at the right and perform a vertical analysis of the income statement. (Use percentage format with 1 decimal place.) | ||||||||
2. | Prepare the Panama Pajama Company balance sheet for December 31, 2018. Include a vertical analysis column at the right | |||||||
and perform a vertical analysis of the balance sheet. (Use the percentage format with 1 decimal place.) | ||||||||
3. | Prepare the Panama Pajama Company statement of cash flows for the year ended December 31, 2018. Use the indirect method. | |||||||
4. | Complete the analysis of the financial statements as directed on the Analysis sheet. | |||||||
5. | Answer the question regarding the differences between IFRS and GAAP on the IFRS Perspective sheet. | |||||||
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