The objective is to test student skills in using the given financial data to prepare a comprehensive balance sheet and multi-step income statement in good form .The given financial data will be comprised of all the various subgroupings that are reported in a multi-step income statement and balance sheet (operating revenues and expenses, other revenues and expenses and irregular items, current assets, investment, fixed assets, intangibles, current liabilities, long-term liabilities, and the equity sections).

Guideline:

Financial Data of New York Traders Inc (January 1, 2016)

a) Read the given financial data of New York Traders Inc.

Accounts Payable

$ 200,500.00

b) Determine which accounts belong to the balance sheet and which accounts belong to the income statement.

Accounts Receivable

$ 165,700.00

c) Determine to which subgroup of balance sheet or income statement each account belongs.

Accumulated Depreciation

$ 350,000.00

d) 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.

Additional Paid-In Capital

$ 40,000.00

e) Arrange the accounts in proper order and functionality.

Allowance for Doubtful Accounts

$ 2,650.00

f) Prepare a comprehensive balance sheet in good form.

Building and Equipment

$ 1,120,000.00

g) Prepare a multi-step income statement in good form.

Cash

$ 45,300.00

h) Submit the Course Project in Week 7.

Common Stock

$ 544,850.00

1. Finished Goods inventory purchased from suppliers on account.

Copyrights

$ 112,000.00

2/10/2016 10,000 units @ $26 each

Customer Deposits (expected to be paid 2017

$ 375.00

6/12/2016 15,000 units @ $28 each

Goodwill

$ 225,000.00

10/23/2016 12,000 units @ $29 each

Income Taxes Payable

$ 42,340.00

Units

Per Unit

11/25/2016 8,000 units @ $30 each

Inventories

$ 315,250.00

12,610.00

$ 25.00

New York Traders Inc. uses periodic inventory system and LIFO costing method. All purchases and sales are made on account

Long-term Investments in Warren Co

$ 95,630.00

2. Payments made to suppliers on account during 2016 are $1,124,450

Deposits with Vendors

$ 47,200.00

3. Sales made to customers on account are 49,356 units @ $36 each

Land

$ 125,000.00

5. Total Interest paid on Notes Payable and Bonds Payable amounted to $17,415

Mortgage Payabe ($2,780 per month)

$ 667,200.00

4. Cash collected from customers during 2016 is $1,750,700

2% Notes Payable to Banks (due 2017)

$ 26,000.00

6. Rental Income on property leased out $ 25,650

Notes Receivable (due 2017)

$ 16,000.00

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.

Patents

$ 219,335.00

During 2016 New York Traders disposed of this store at a loss of $35,800

Retained Earnings

$ 127,500.00

8. New York Traders Inc. wants to make an allowance for doubtful debts at 2% on accounts receivable for the year 2016

Trademarks

$ 115,000.00

9. Selling and Administrative expenses are $128,475. These expenses include $56,000 depreciation expense on Building and Equipment but exclude bad debts expenses.

Twenty-year, 12% Bonds, due 1/1/2020

$ 600,000.00

10. Income Tax Expense paid is $90,500. New York Traders Income Tax Rate for 2016 is 30%.

Given Key Figures:

Ending Inventory (LIFO) = $206,350

Ending Balance Retained Earnings = $296,609

Total Equity and Liabilities = $2,544,505

PLEASE HELP WITH BS AND INCOME STATEMENT. Here is what I have so far:

New York Traders						New York Traders
Balance Sheet						Income Statement
31-Dec-16						31-Dec-16
Assets:						Revenues:
Current Assets:						Sales Revenue		$ 1,776,816.00
Cash	$ 542,650.00					Cost of Goods Sold		$ 1,376,900.00
Accounts Receivable	$ 191,816.00					Gross Profit		$ 399,916.00
Allowance for Doubtful Debts	$ (3,836.32)					Operating Expenses
Inventories	$ 206,350.00					Allowance for Doubtful Accounts	$ (1,186.32)
Total Current Assets		$ 936,979.68				Selling & Administrative Expenses	$ (72,475.00)
Long-Term Assets						Total Operating Expenses		$ (73,661.32)
Buildings and Equipment	$ 1,120,000.00					Non-Operating Income and Expenses
Less: Accumulated Depreciation	$ (350,000.00)					Rental Income	$ 25,650.00
Land	$ 125,000.00					Interest Paid	$ (17,415.00)
Long-term Investments With Warren Co.	$ 95,630.00					Loss on Sale of Asset	$ (35,800.00)
Deposits With Vendors	$ 47,200.00					Total Non-Operating Income and Expenses		$ (27,565.00)
Notes Receivable (due 2017)	$ 16,000.00					Net Income Before Income Tax		$ 298,689.68
Patents	$ 219,335.00					Income Tax (30%)		$ (89,606.90)		What it should be	How far I am off
Copyright	$ 112,000.00					Net Income		$ 209,082.78		$ 169,109.00	$ 39,973.78
Goodwill	$ 225,000.00
Trademark	$ 115,000.00
Total Long-Term Assets		$ 1,725,165.00		What it should be	How far I am off
Total Assets			$ 2,662,144.68	$ 2,544,505.00	$ 117,639.68
Liabilities:
Current Liabilities
Accounts Payable	$ 344,050.00
Income Tax Payable	$ 42,340.00
Total Current Liabilities		$ 386,390.00
Long-term Liabilities:
Mortgage Payable	$ 667,200.00
Notes Payable to Banks	$ 26,000.00
Twenty-year, 12% Bonds, Due 1/1/2020	$ 600,000.00
Customer Deposits (expected 2017)	$ 375.00
Total Long-term Liabilities		$ 1,293,575.00
Total Liabilities			$ 1,679,965.00
Stockholders' Equity:
Common Stock	$ 544,850.00
Additional Paid in Capital	$ 40,000.00
Retained Earnings	$ 127,500.00
Total Stockholders' Equity		$ 712,350.00		What it should be	How far I am off
Total Liabilities + Stockholders' Equity			$ 2,392,315.00	$ 2,544,505.00	$ 152,190.00