Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $93,000 cash from Busby and $207,000 from Beatty. During Year 1, the partnership earned $62,900 in cash revenues and paid $34,050 for cash expenses. Busby withdrew $2,900 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.

Income Statement Capital Statement Prepare the income statement. Cash Expenses Net income Balance Sheet Stmt of Cash Flows B&B PARTNERSHIP Income Statement For the Year Ended December 31, Year 1 $ 0 Income Statement Capital Statement Prepare a capital statement. Beginning capital balance Plus: Capital acquired from owner Less: Withdrawal by owner Ending capital balance Balance Sheet Stmt of Cash Flows B&B PARTNERSHIP Capital Statement For the Year Ended December 31, Year 1 $ 0 Income Statement Capital Statement Balance Sheet Stmt of Cash Flows Prepare a balance sheet. (Do not round intermediate calculations and amount.) B&B PARTNERSHIP Balance Sheet As of December 31, Year 1 Assets 0 Cash Total assets Liabilities Equity F. Busby, Capital J. Beatty, Capital Total equity Total liabilities and equity