Integration of Financial Statements
Three independent sets of financial statements with several amounts missing follow.
Income Statement Set A Set B Set C
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Income Statement
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Set A
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Set B
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Set C
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Revenues Expenses
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$2,400 (a)
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$ (g) 10,000
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$ 480 (m)
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Net income
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$ (b)
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$ (h)
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$ 296
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Statement of owner's equity
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|
|
|
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Beginning balance
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$5,800
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$48,800
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$ 480
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Net income Less withdrawals
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(c) 400
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3,200 (i)
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(n) (o)
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Ending balance
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$6,180
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$ (j)
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$ (p)
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Balance Sheet
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|
|
|
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Total assets
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$ (d)
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$60,000
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$ (q)
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Total liabilities Owner's capital
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$3,200 (e)
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$10,000 (k)
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$ (r) 560
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Total liabilities and owner's equity
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$ (f )
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$ (l)
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$1,160
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Required
1. Complete each set of financial statements by determining the amounts that correspond to the letters.
2. Accounting Connection- In what order is it necessary to prepare the financial statements and why?