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Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $104,000 cash from Busby and $156,000 from Beatty.

Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $104,000 cash from Busby and $156,000 from Beatty. During Year 1, the partnership earned $66,300 in cash revenues and paid $31,250 for cash expenses. Busby withdrew $2,300 cash from the business, and Beatty withdrew $3,400 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.

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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.

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed Prepare the income statement. Prepare a capital statement. Prepare a balance sheet. (Do not round intermediate calculations and round your final answer to the nearest wl amount.) Prepare a balance sheet. (Do not round intermediate calculations and round your final answer to the nearest wl amount.)

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