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
Guideline
- 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
| Accounts Payable | 200,500 |
| Account Receivable | 165,700 |
| Accumulated Depreciations | 350,000 |
| Additional Paid-In Capital | 40,000 |
| Allowance for Doubtful Accounts | 2,650 |
| Building and Equipment | 1,120,000 |
| Cash | 45,300 |
| Common Stock | 544,850 |
| Copyrights | 112,000 |
| Customer Deposits (expected to be paid in 2017) | 375 |
| Goodwill | 225,000 |
| Income Taxes Payable | 42,340 |
| Inventories | 315,250 |
| Long-term Investments in Warren Co. | 95,630 |
| Deposits With Vendors | 47,200 |
| Land | 125,000 |
| Mortgage Payable ($2,780 per month) | 667,200 |
| 2% Notes Payable to Banks ( due 2017) | 26,000 |
| Notes Receivable (due 2017) | 16,000 |
| Patents | 219,335 |
| Retained Earnings | 127,500 |
| Trademarks | 115,000 |
| 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%. |
Assets: 2,544,505
Net income: 169,109
Show work for these items below:
- Sales
- Cost of goods sold
- Interest
- Bad debt
- Inventory
- 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