Chapter 19, Problem 2DC

Summary Introduction

Balance sheet: This statement shows the assets, liabilities and stockholder’s equity of the company, which depicts the actual financial position of the company. Therefore balance sheet of a company is the one of the most important financial statements.

Income statement: This financial statement shows the net income or net loss of the company for a particular accounting period for which it is prepared. The net income is calculated by deducting all the incurred expenses from the total revenue of the company.

To determine:

Balance sheet and income statement of company W.