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 interrelation- ships 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, 2017"?

Transcribed Image Text:

DEOL COMPANY Balance Sheet October 31,2017 Assets Liabilities and Owner's Equity Cash Accounts receivable Land Building and equipment s 5,000Liabilities 10,000 Notes payable $59,600 () Accounts payable 45,000 Total liabilities 66,500 Total assets $110,000 Owners equity B. Deol, capital Total liabilities and owner's equity (iv) DEOL COMPANY Income Statement Year Ended October 31, 2017 Revenues Service revenue $80,000 Expenses Salaries expense Other expenses Supplies expense $37,500 6,000 Total expenses 62,500 (vi) Profit DEOL COMPANY Statement of Owner's Equity Year Ended October 31, 2017 B. Deol, capital, November 1, 2016 Add: Investments Profit $35,000 Vil Less: B. Deol, drawings B. Deol, capital, October 31, 2017 57,500 (ix) s (x)