Faith Busby and Jeremy Beatty started the B&B partnership on January 1, 2018. The business acquired $88,800 cash from Busby and $151,200 from Beatty. During 2018, the partnership earned $62,700 in cash revenues and paid $38,350 for cash expenses. Busby withdrew $3,400 cash from the business, and Beatty withdrew $4,400 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 2018 fiscal year.

Income Statement Capital Statement Balance Sheet Smt of Cash Fls Prepare the income statement. B&B PARTNERSHIP Income Statement For the Year Ended December 31. 2018 Revenues Expenses Net income $ 62,700 38,350 $ 24,350