Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem: Module 3 Textbook Problem 10 Learning Objective: 3-9 Identify the primary characteristics of sole proprietorships, partnerships, and corporations Faith Busby and Jeremy Beatty started

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Problem: Module 3 Textbook Problem 10 Learning Objective: 3-9 Identify the primary characteristics of sole proprietorships, partnerships, and corporations Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $87,500 cash from Busby and $162,500 from Beatty, During Year 1, the partnership earned $65,300 in cash revenues and paid $26,100 for cash expenses. Busby withdrew $2,000 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&B's Year 1 fiscal year Complete this question by entering your answers in the ta Income Statement Capital statement Balance Sheet Stmt of Cash Flows Prepare a capital statement. 0 B&B PARTNERSHIP Capital Statement For the Year Ended December 31, Year 1 Beginning capital balance $ Plus: Capital acquired from owner Plus: Net income Less: Withdrawal by owner Ending capital balance $ $ 0 Complete this question by entering your answers in the tabs below. Income Statement Capital Statement Balalice Sheet Stmt of Cash Flows Prepare a balance sheet. (Do not round intermediate calculations and round ya amount.) B&B PARTNERSHIP Balance Sheet As of December 31, Year 1 Assets Cash $ 0 Total assets Liabilities Equity F. Busby, Capital J. Beatty, Capital 0 Total equity Total liabilities and equity $ 0 Complete this question by entering your answers in the tabs below Income Statement Capital Statement Balance Sheet Stmt of Cash Flows Prepare a statement of cash flows. (Cash outflows should be indicated with B&B PARTNERSHIP Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: $ Net cash flow from operating activities Cash flows from investing activities: $ 0 Net cash flow from investing activities Cash flows from financing activities: Net cash flow from financing activities Net change in cash 0 $ $ Ending cash balance

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

Step: 3

blur-text-image

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

Inventory Best Practices

Authors: Steven M. Bragg

2nd Edition

1118000749, 9781118000748

More Books

Students also viewed these Accounting questions