Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cascade Company was started on January 1, Year 1, when it acquired $153,000 cash from the owners. During Year 1, the company earned cash revenues

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

Cascade Company was started on January 1, Year 1, when it acquired $153,000 cash from the owners. During Year 1, the company earned cash revenues of $84,600 and incurred cash expenses of $69,500. The company also paid cash distributions of $10,000. Required Prepare a Year 1 income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows under each of the following assumptions. Consider each assumption separately.) b. Cascade is a partnership with two partners, Carl Cascade and Beth Cascade. Carl Cascade invested $99,450 and Beth Cascade invested $53,550 of the $153,000 cash that was used to start the business. Beth was expected to assume the vast majority of the responsibility for operating the business. The partnership agreement called for Beth to receive 60 percent of the profits and Carl to get the remaining 40 percent. With regard to the $10,000 distribution, Beth withdrew $3,000 from the business and Carl withdrew $7,000. (Amounts to be deducted should be indicated with minus sign.) CASCADE COMPANY Income Statement For the Year Ended December 31, Year 1 + $ 0 CASCADE COMPANY Capital Statement For the Year Ended December 31, Year 1 1 $ Required information CASCADE COMPANY Balance Sheet As of December 31, Year 1 Assets 0 Total Assets Liabilities Equity $ 0 Total liabilities and equity CASCADE COMPANY Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flow from operating activities: $ 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities: 0 Net cash flow from financing activities Net change in cash 0 0 Ending cash balance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting For Decision Makers

Authors: Mark DeFond

2nd Edition

1618533142, 9781618533142

More Books

Students also viewed these Accounting questions

Question

=+ How about one you felt had acted in a hypocritical way?

Answered: 1 week ago