Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $84,000 cash from Busby and $196,000 from Beatty.

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Faith Busby and Jeremy Beatty started the B\&B partnership on January 1, Year 1. The business acquired $84,000 cash from Busby and $196,000 from Beatty. During Year 1, the partnership earned $60,600 in cash revenues and paid $36.450 for cash expenses. Busby withdrew $3,100 cash from the business, and Beatty withdrew $3,000 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. Prepare the income statement. Faith Busby and Jeremy Beatty started the B\&B partnership on January 1, Year 1 . The business acquired $84,000 cash from Busby and $196,000 from Beatty. During Year 1, the partnership earned $60,600 in cash revenues and paid $36,450 for cash expenses, Busby withdrew $3,100 cash from the business, and Beatty withdrew $3,000 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. Prepare a capital statement. Complete this question by entering your answers in the tabs below. Prepare a balance sheet. (Do not round intermedlate calculations and round your final answer to the nearest whole dollar amount.) \begin{tabular}{|l|l|l|} \hline \multicolumn{1}{|c|}{ B\&B PARTNERSHIP } \\ \hline \multicolumn{1}{|c|}{ Statement of Cash Flows } \\ \hline For the Year Ended December 31 , Year 1 \\ \hline Cash flows from operating activities: & & \\ \hline & & \\ \hline Net cash flow from operating activities & & \\ \hline Cash flows from investing activities: & \\ \hline & & \\ \hline Net cash flow from investing activities & \\ \hline Cash flows from financing activities & \\ \hline & \\ \hline & & \\ \hline Net cash flow from financing activities & \\ \hline Net change in cash & \\ \hline & \\ \hline Ending cash balance & \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Environmental Audit A Compendium For Nicaragua

Authors: Amarus Aurelio Urbina

1st Edition

6203976547, 978-6203976540

More Books

Students also viewed these Accounting questions