Here are incomplete financial statements for Lee Company:

Instructions

a. Calculate the missing amounts (a) to (j).

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.

Why isn’t the balance sheet dated the same way as the income statement and statement of owner’s equity: “Year Ended February 29, 2024”?

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 29, 2024”?

Transcribed Image Text:

Assets Cash $ 9,500 Accounts receivable 5,300 Land (a) Building and equipment 41,500 Total assets Revenues Service revenue Expenses $ (b) Salaries expense Other expenses Supplies expense Total expenses Profit for the year LEE COMPANY Balance Sheet February 29, 2024 Liabilities and Owner's Equity Liabilities Notes payable Accounts payable Total liabilities M. Lee, Capital Total liabilities and owner's equity LEE COMPANY Income Statement Year Ended February 29, 2024 $32,000 (e) 1,500 $95,000 59,500 (f) $26,000 (c) 43,800 (d) $91,300