Question: Balance Sheet and Single-Step Income Statement
Objective: 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: • 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.
• Submit the Course Project in Week 7.
Course Project Check Figures
1) Multi-step Income Statement
• Net Income $131, 309
• Gross Profit $399,916
• Operating Income $270,255
• Interest Expense $72,520
2) The Balance Sheet
• Retained Earnings $258,809
• Cash $542,650
• Total Current Assets $952,980
• Total Current Liabilities $433,646
• Total Assets $2,511,145
• Total Liabilities $1,667,486
Information related to above question is enclosed below:
Attachment:- Project.rar