ACC 550 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

ACC 550 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.

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%.