Here are incomplete financial statements for Lee 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 interrelation- ships between the income statement, statement of owner's equity, and balance sheet.
TAKING IT FURTHER
Why isn't the balance sheet dated the same way as the income statement and statement of owner's equity: "Year Ended February 28, 2017"?

Transcribed Image Text:

LEE COMPANY Balance Sheet February 28, 2017 Assets Liabilities and Owner's Equity Cash Accounts receivable Land $ 9,500 Liabiities 5,300 (i) Notes payable Accounts payable $26,000 43,800 (iv) $91,300 Building and equipment41,500 Total liabilities Total assets M. Lee, Capital Total liabilities and owner's equity LEE COMPANY Income Statement Year Ended February 28, 2017 Revenues Service revenues $95,000 Expenses Salaries expense Other expenses $32,000 Supplies expense 1,500 Total expenses 59,500 (vi) Profit LEE COMPANY Statement of Owner's Equity Year Ended February 28, 2017 M. Lee, capital, March 1, 2016 Add: Investments $22,000 (vii) Vil (vii) 62,500 (ix) Profit Less: M. Lee, drawings M. Lee, capital, February 28, 2017