The Panoramic Survey Telescope and Rapid Response System 1 (Pan-STARRS1) survey is acquiring multi-epoch imaging in five bands (g P1, r P1, i P1, z P1, y P1) over the entire sky north of declination −30° (the 3π survey). In 2011 July a test area of about 70 deg2 was observed to the expected final depth of the main survey. In this, the first of a series of papers targeting the galaxy count and clustering properties of the combined multi-epoch test area data, we present a detailed investigation into the depth of the survey and the reliability of the Pan-STARRS1 analysis software. We show that the Pan-STARRS1 reduction software can recover the properties of fake sources, and show good agreement between the magnitudes measured by Pan-STARRS1 and those from Sloan Digital Sky Survey. We also examine the number of false detections apparent in the Pan-STARRS1 data. Our comparisons show that the test area survey is somewhat deeper than the Sloan Digital Sky Survey in all bands, and, in particular, the z band approaches the depth of the stacked Sloan Stripe 82 data.