Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information Problem 8-20A (Algo) Effect of business structure on financial statements LO 8-1 {The following information applies to the questions displayed below.) Cascade Company

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Required information Problem 8-20A (Algo) Effect of business structure on financial statements LO 8-1 {The following information applies to the questions displayed below.) Cascade Company was started on January 1 Year 1, when it acquired $158,000 cash from the owners. During Year 1, the company earned cash revenues of $87700 and incurred cash expenses of $65,100. The company also paid cash distributions of $9,500 Required Prepare a Year 1 income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows under each of the following assumptions. Consider each assumption separately) Problem 8-20A (Algo) Part b b. Cascade is a partnership with two partners, Cart Cascade and Beth Cascade Carl Cascade invested $55,300 and Beth Cascade invested $102,700 of the $158,000 cash that was used to start the business, Beth was expected to assume the vast majority of the responsibility for operating the business. The partnership agreement called for Beth to receive 65 percent of the profits and Carlto get the remaining 35 percent. With regard to the $9,500 distribution, Beth withdrew $6175 from the business and Carl withdrew $3,325 Complete this question by entering your answers in the tabs below D. Cascade is a partnership with two partners, Can Cascade ana bet cascade. Can Cascade investea 355,300 and set cascade Invested $102.700 of the $158.000 cash that was used to start the business. Beth was expected to assume the vast majority of the responsibility for operating the business. The partnership agreement called for Beth to receive 65 percent of the profits and Carl to get the remaining 35 percent. With regard to the $9,500 distribution, Beth withdrew $6175 from the business and Carl withdrew $3,325 Complete this question by entering your answers in the tabs below. Inc stmt Stmt of Changes Bal Sheet Cash Flows Prepare a income statement for Year 1. CASCADE COMPANY Income Statement For the Year Ended December 31, Year 1 $ 0 Kineste Stmt of Changes > veinid by a minus sign.) CASCADE COMPANY Capital Statement For the Year Ended December 31, Year 1 $ CASCADE COMPANY Balance Sheet As of December 31, Year 1 Assets 0 Total Assets Liabilities Equity Total liabilities and equity $ CASCADE COMPANY Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: $ 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities: 0 Net cash flow from financing activities Net change in cash 0 $ 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

The Impact Of Auditor Rotation On Audit Quality A Field Study From Egypt

Authors: Diana Mohamed

1st Edition

3848425378, 978-3848425372

More Books

Students also viewed these Accounting questions

Question

Rewrite the equation in a completely factored form.

Answered: 1 week ago

Question

4. Explain the strengths and weaknesses of each approach.

Answered: 1 week ago

Question

3. Identify the methods used within each of the three approaches.

Answered: 1 week ago