Malcolm & Company incurred some costs on behalf of their client, Puma Inc. in January. Puma wasnt billed for the costs until February. The work for Puma was started and completed in February. Malcolm prepared financial statements for January and for February.

On which financial statement should those costs appear?

Select one:

A. Income statement for February; Balance sheet for February

B. Balance sheet in January; Income statement for February

C. Income statement for both January and February

D. Balance sheet for both January and February