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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. MUST SHOW COMPUTATION
Prepare a multi-step income statement in good form. MUST SHOW COMPUTATION
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