Incomplete financial statements for Wu, Inc. follow:

________________________________WU, INC.

______________________________Income Statement

__________________________Year Ended August 31, 2015

Service revenue..................................................................$85,000

Operating expenses....................................................................[1]

Profit before income tax.......................................................35,000

Income tax expense................................................................9,000

Profit............................................................................................$ [2]

Instructions
(a) Calculate the missing amounts [1] to [13]. You may not be able to solve each item in numerical order.
(b) Explain
(1) The sequence for preparing and presenting the financial statements, and
(2) The interrelationships between the income statement, statement of changes in equity, and statement of financial position.

Transcribed Image Text:

WU, INC. Statement of Changes in Equity Year Ended August 31,201!5 Co mmon Shares $25,000 10,000 Retained Earnings $20,000 Total Equity s [5] Balance, September 1, 2014 Issued common shares Profit Dividends Balance, August 31, 2015 6 4 $35,000 $31,000 sI91 WU, INC. Statement of Financial Position August 31, 2015 Assets Liabilities and Shareholders' Equit $ [10]Liabilities Cash Accounts receivable Land Buildings 15,000 20,000 40,000 5,000 Accounts pavable $19,000 Shareholders' equity quipment Total assets [12] [13] Total liabilities and shareholders' equity $85,000 Common shares Retained earnings $11