Here are incomplete financial statements for Deol Company:

Instructions
(a) Calculate the missing amounts (i) to (x).
(b) Write a memo explaining (1) the sequence for preparing the financial statements, and (2) the interrelationships between the income statement, statement of owner's equity, and balance sheet.
TAKING IT FURTHER Why aren't the income statement and the statement of owner's equity dated the same way as the balance sheet: "October 31, 2014"?

Transcribed Image Text:

DEOL COMPANY Balance Sheet October 31, 2014 Assets Liabilities and Owner's Equity S 5,000 Liabilities Accounts receivable Notes payable Accounts payable 10,000 $59,600 Building and equipment 5,000 Total liabilities 66,500 Total assets $110,000 Owner's equity B. Deol, capital Total liabilities and owner's equity (iv) DEOL COMPANY Income Statement Year Ended October 31, 2014 Revenues Service revenue $80,000 Expenses Salaries expense Other expenses Supplies expense $37,500 Total expenses 62,500 Profit s (vi) DEOL COMPANY Statement of Owner's Equity Year Ended October 31, 2014 B. Deol, capital, November 1, 2013 Add: Investments Prosi $35,000 (vii) Less: B. Deol, drawings B. Deol, capital, October 31, 2014 57,500 (ix) $ (x)