Exercise 8-2A (Algo) Effect of accounting events on the financial statements of a sole proprietorship LO 8-1

A sole proprietorship was started on January 1, Year 1, when it received $78,500 cash from Marlin Jones, the owner. During Year 1, the company earned $36,700 in cash revenues and paid $18,400 in cash expenses. Jones withdrew $4,900 cash from the business during Year 1.

Required

Prepare the income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows for Jones's Year 1 fiscal year.

MARLIN JONES SOLE PROPRIETORSHIP Balance Sheet As of December 31, Year 1 Assets Cash Common stock Total assets $ 0 Liabilities Equity Appropriated retained earnings Dividends payable Total liabilities and equity $ 0 Prepare a statement of cash flows. (Cash outflows should be indicated with a minus sign.) MARLIN JONES SOLE PROPRIETORSHIP Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: $ 0 Net cash flow from operating activities Cash flows from investing activities: $ 0 Net cash flow from investing activities Cash flows from financing activities: 0 Net cash flow from financing activities Net change in cash 0 Ending cash balance $ 0