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 interrelationships 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, 2014"

Transcribed Image Text:

LEE COMPANY Balance Sheet February 28, 2014 Assets Liabilities and Owner's Equit Cash Accounts receivable Land Building and equipment 9,500 5,300 Liabilities Notes payable Accounts payable $26,000 41,500 s (ii) 43,800 (iv) $91,300 Total liabilities Total assets M. Lee, Capital Total liabilities and owner's equity LEE COMPANY Income Statement Year Ended February 28, 2014 Revenues Service revenues $95,000 Expenses Salaries expense Other expenses Supplies expense $32,000 1,500 Total expenses 59,500 Profit (vi) LEE COMPANY Statement of Owner's Equity Year Ended February 28, 2014 M. Lee, capital, March 1,2013 Add: Investments $22,000 (vii) Profit 62,500 (ix) Less: M. Lee, drawings M. Lee, capital, February 28, 2014