Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $74,800 cash from Busby and $145,200 from Beatty. During Year 1, the partnership earned $64,900 in cash revenues and paid $27,300 for cash expenses. Busby withdrew $3,900 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.

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.

Faith Busby and Jeremy Beatty started the B\&B partnership on January 1, Year 1. The business acquired $74,800 cash from Busby and $145,200 from Beatty. During Year 1, the partnership earned $64,900 in cash revenues and paid $27,300 for cash expenses. Busby withdrew $3,900 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. 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