Exercise 11-2A (Algo) Effect of accounting events on the financial statements of a sole proprietorship LO 111 A sole proprietorship was started on January 1, Year 1, when it recelved $60,500 cash from Marlin Jones, the owner During Year 1, the company earned $45,200 in cash revenues and paid $22,210 in cash expenses. Jones withdrew $5,500 cash from the business during Year 1 . Required Prepare an income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows for Jones's Year 1 fiscal year. Note: For Statement of Cash Flows only, indicate amounts to be deducted and cash outflows with a minus sign. MARLIN JONES SOLE PROPRIETORSHIP Capital Statement For the Year Ended December 31, Year 1 \begin{tabular}{|l|l|} \hline Beginning capital balance \\ \hline & \\ \hline Ending capital balance & $ \\ \hline \end{tabular} MARLIN JONES SOLE PROPRIETORSHIP Balance Sheet As of December 31 , Year 1 \begin{tabular}{|l|l|l|} \hline Assets & & \\ \hline Total assets & & \\ \hline Liabilities & & \\ \hline Equity & & \\ \hline & & \\ \hline Total liabilities and equity & & \\ \hline \end{tabular} MARLIN JONES SOLE PROPRIETORSHIP Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities