Chapter 1, Problem 5PSA

(a)

To determine

Income Statement: A part of financial statements that lists the income and expenses of business for an accounting year is called income statement. It is prepared at the end of accounting period to know the profitability of a business.

Balance Sheet: A part of financial statements that lists the assets, liabilities and stockholders’ equity in the business during an accounting period is called balance sheet.

To determine: The missing amounts (a) to (l).

(b)

To determine

To prepare: The owners’ equity statement for Company A.

(c)

To determine

To prepare: Memo