Exercise 11-3A (Algo) Effect of accounting events on the financial statements of a partnership LO 11-1 Faith Busby and Jeremy Beatty started the B\&B partnership on January 1, Year 1. The business acquired $85,800 cash from Busby and $174,200 from Beatty. During Year 1 , the partnership earned $64,500 in cash revenues and paid $37,500 for cash expenses. Busby withdrew $2,700 cash from the business, and Beatty withdrew $3,200 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, balance sheet, and statement of cash flows for B\&B's Year 1 fiscal year. Complete this question by entering your answers in the tabs below. Prepare an income statement for B\&B's Year 1 fiscal year. \begin{tabular}{|c|} \hline B\&B PARTNERSHIP \\ \hline Capital Statement \\ \hline For the Year Ended December 31, Year 1 \\ \hline \\ \hline \end{tabular} Ending capital balance \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ B\&B PARTNERSHIP } \\ \hline \multicolumn{2}{|c|}{ Balance Sheet } & \\ \hline \multicolumn{2}{|c|}{ As of December 31, Year 1} & \\ \hline Assets & & \\ \hline & & \\ \hline & & \\ \hline Total assets & & \\ \hline Liabilities & & \\ \hline Equity & & \\ \hline & & \\ \hline \hline & & \\ \hline \hline & & \\ \hline Total equity & & \\ \hline Total liabilities and equity & & \\ \hline \end{tabular}