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, 2024”?

Transcribed Image Text:

Assets Cash Accounts receivable Land Building and equipment Total assets Revenues $ 5,000 10,000 (i) 45,000 Expenses $110,000 Service revenue Salaries expense Other expenses Supplies expense Total expenses Profit for the year DEOL COMPANY Balance Sheet October 31, 2024 Liabilities and Owner's Equity Liabilities Notes payable Accounts payable Total liabilities Owner's equity B. Deol, capital Total liabilities and owner's equity DEOL COMPANY Income Statement Year Ended October 31, 2024 $37,500 6,000 $80,000 62,500 $ (vi) $59,600 (ii) 66,500 $ (iii) (iv)