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%.

Assets: 2,544,505

Net income: 169,109

Show work for these items below:

  1. Sales
  2. Cost of goods sold
  3. Interest
  4. Bad debt
  5. Inventory
  6. Accounts payable
  7. Account balance
  8. Income tax payable
  9. Building and equipment prep
  10. Accumulated depreciation
  • 15/08/2017
  • 30
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