Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $83.200 cash from Busby and $176,800 from Beatty. During Year 1, the partnership earned $64,300 in cash revenues and paid $39.950 for cash expenses. Busby withdrew $2,100 cash from the business, and Beatty withdrew $3,000 cash. The net income was allocated to the capital accounts of the two partners in proportion to the amounts of their original investments in the business. Required Prepare an income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows for B&B's Year 1 fiscal year.

Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $83.200 cash from Busby and $176,800 from Beatty. During Year 1, the partnership earned $64,300 in cash revenues and paid $39.950 for cash expenses. Busby withdrew $2,100 cash from the business, and Beatty withdrew $3,000 cash. The net income was allocated to the capital accounts of the two partners in proportion to the amounts of their original investments in the business. Required Prepare an income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows for B&B's Year 1 fiscal year.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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