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