ACCT550 Week 7 Course Project Assignment Read the given Financial data of New York Traders Inc. Determine which accounts belong to the balance sheet and which accounts belong to the income statement
- Read the given financial data of New York Traders Inc.
- Determine which accounts belong to the balance sheet and which accounts belong to the income statement.
- Determine to which subgroup of balance sheet or income statement each account belongs.
- Compute the correct account balances that should be reported in balance sheet and correct amounts of revenues and expenses that should be reported in income statement.
- Arrange the accounts in proper order and functionality.
- Prepare a comprehensive balance sheet in good form.
- Prepare a multi-step income statement in good form.
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Financial Data of New York Traders Inc. as of January 1, 2016
|Additional Paid-In Capital||40,000|
|Allowance for Doubtful Accounts||2,650|
|Building and Equipment||1,120,000|
|Customer Deposits (expected to be paid in 2017)||375|
|Income Taxes Payable||42,340|
|Long-term Investments in Warren Co.||95,630|
|Deposits With Vendors||47,200|
|Mortgage Payable ($2,780 per month)||667,200|
|2% Notes Payable to Banks ( due 2017)||26,000|
|Notes Receivable (due 2017)||16,000|
|Twenty-year, 12% Bonds, Due 1/1/2020||600,000|
Financial Data of New York Traders Inc. for the Year 2016
|1||Finished Goods inventory purchased from suppliers on account.
2/10/2016 10,000 units @ $26 each
6/12/2016 15,000 units @ $28 each
10/23/2016 12,000 units @ $29 each
11/25/2016 8,000 units @ $30 each
New York Traders Inc. uses periodic inventory system and LIFO costing method. All purchases and sales are made on account.
|2||Payments made to suppliers on account during 2016 are $1,124,450.|
|3||Sales made to customers on account are 49,356 units @ $36 each|
|4||Cash collected from customers during 2016 is $1,750,700|
|5||Total Interest paid on Notes Payable and Bonds Payable amounted to $17,415|
|6||Rental Income on property leased out $ 25,650|
|7||New York Traders Inc. was operating a retail store at Chicago. Original cost of building and equipment was $120,000 with a book value of $95,000. During 2016 New York Traders disposed of this store at a loss of $35,800.|
|8||New York Traders Inc. wants to make an allowance for doubtful debts at 2% on accounts receivable for the year 2016.|
|9||Selling and Administrative expenses are $128,475. These expenses include $56,000 depreciation expense on Building and Equipment but exclude bad debts expenses.|
|10||Income Tax Expense paid is $90,500. New York Traders Income Tax Rate for 2016 is 30%.|
Net income: 169,109
Show work for these items below:
- Cost of goods sold
- Bad debt
- Accounts payable
- Account balance
- Income tax payable
- Building and equipment prep
- Accumulated depreciation
Course: ACCT550 Intermediate Accounting I
School: Keller School of Management
- : 15/04/2018
- : 50