Chapter 3, Problem 3.4DIE

(a)

To determine

Income Statement: The income statement is that financial statement which shows the net income (or loss) of the company. In the income statement, to calculate the net income, all expenses incurred by the company are deducted from the total income of the company.

Balance sheet: The balance sheet of a company is the one of the most important financial statements because it shows the financial position of the company. Main components of balance sheet are assets, liabilities and stockholder’s equity.

$\text{Assets }=\text{ Liabilities}+\text{Stockholder's equity}$

To determine: Net income for the quarter April 1 to June 30.

(c)

To determine

The amount that appears for owner’s capital as on June 30, 2017.

(b)

To determine

Total assets and total liabilities at June 30, 2017.