Question
[The following information applies to the questions displayed below.] Cascade Company was started on January 1, 2018, when it acquired $169,000 cash from the owners.
[The following information applies to the questions displayed below.]
Cascade Company was started on January 1, 2018, when it acquired $169,000 cash from the owners. During 2018, the company earned cash revenues of $92,300 and incurred cash expenses of $63,200. The company also paid cash distributions of $6,000.
Required
Prepare a 2018 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.)
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B. Cascade is a partnership with two partners, Carl Cascade and Beth Cascade. Carl Cascade invested $101,400 and Beth Cascade invested $67,600 of the $169,000 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 60 percent of the profits and Carl to get the remaining 40 percent. With regard to the $6,000 distribution, Beth withdrew $1,800 from the business and Carl withdrew $4,200.
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CASCADE COMPANY | |
Capital Statement | |
For the Year Ended December 31, 2018 | |
Beginning capital balance | not attempted |
Plus: Capital acquired from partners | not attempted |
Plus: Net income | not attempted |
Less: Withdrawal by partners | not attempted |
Ending capital balances | $0 |
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CASCADE COMPANY Balance Sheet As of December 31, 2018 Assets Cashselected answer correct not attempted not attempted not attempted Total Assets 0 Liabilities not attempted Equity not attempted not attempted not attempted Beth Cascade, capitalselected answer correct not attempted not attempted Carl Cascade, capitalselected answer correct not attempted not attempted Total liabilities and equity $0
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