Exercise 8-3A (Algo) Effect of accounting events on the financial statements of a partnership LO 8-1

Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $90,000 cash from Busby and $160,000 from Beatty. During Year 1, the partnership earned $62,200 in cash revenues and paid $32,600 for cash expenses. Busby withdrew $1,700 cash from the business, and Beatty withdrew $4,700 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&Bs Year 1 fiscal year.

Exercise 8-3A (Algo) Effect of accounting events on the financial statements of a partnership LO 8-1 Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $90,000 cash from Busby and $160,000 from Beatty. During Year 1, the partnership earned $62,200 in cash revenues and paid $32,600 for cash expenses. Busby withdrew $1,700 cash from the business, and Beatty withdrew $4,700 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. Complete this question by entering your answers in the tabs below. Income Statement Capital Statement Balance Sheet Stmt of Cash Flows Prepare the income statement. B&B PARTNERSHIP Income Statement For the Year Ended December 31, Year 1 Prepare a capital statement. B&B PARTNERSHIP Capital Statement For the Year Ended December 31, Year 1 Beginning capital balance Ending capital balance Prepare a balance sheet. (Do not round intermediate calculations and round your final answer to the nearest whole dollar amount.) B&B PARTNERSHIP Balance Sheet As of December 31, Year 1 Assets Total assets Liabilities Equity Total equity Total liabilities and equity Prepare a statement of cash flows. (Cash outflows should be indicated with a minus sign.) B&B PARTNERSHIP Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: Net cash flow from operating activities Cash flows from investing activities: Net cash flow from investing activities Cash flows from financing activities: Net cash flow from financing activities Net change in cash Ending cash balance Balance Sheet Stmt of Cash Flows