Upton Company was started on January 1, 2011, when the owners invested $160,000 cash in the business. During 2011, the company earned cash revenues of $120,000 and incurred cash expenses of $82,000. The company also paid cash distributions of $15,000. Required:

Prepare a 2011 income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows using each of the following assumptions. (Consider each assumption separately.)

(a)

Upton is a sole proprietorship owned by J. Upton. (For balance sheet be sure to list the assets and liabilities in order of their liquidity. All expenses and amounts to be deducted should be indicated with minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

Upton Company Income Statements For the Year Ended December 31, 2011

Revenues

$

Expenses

$

Upton Company Capital Statement For the Year Ended December 31, 2011

$

Ending Capital Balance

$

Upton Company Balance Sheet As of December 31, 2011

Assets

$

Total Assets

$

Liabilities

$0

Equity

Total Liabilities and Equity

$

Upton Company Statement of Cash Flows For the Year Ended December 31, 2011

Cash Flows From Operating Activities:

$

Net Cash Flow from Operating Activities

$

Cash Flows From Investing Activities

0

Cash Flows From Financing Activities:

Net Cash Flow from Financing Activities

Net Change in Cash

Ending Cash Balance

$

2.

(b)	Upton is a partnership with two partners, Dan and Nancy Upton. Dan invested $100,000 and Nancy invested $60,000 of the $160,000 cash that was used to start the business. Nancy was expected to assume the vast majority of the responsibility for operating the business. The partnership agreement called for Nancy to receive 60 percent of the profits and Dan the remaining 40 percent. With regard to the $15,000 distribution, Nancy withdrew $6,000 from the business and Dan withdrew $9,000. (For balance sheet be sure to list the assets and liabilities in order of their liquidity. All expenses and amounts to be deducted should be indicated with minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)
Upton Company Income Statement For the Year Ended December 31, 2011
Revenues	$
Expenses
$
Upton Company Capital Statement For the Year Ended December 31, 2011
$
Ending Capital Balance	$
Upton Company Balance Sheet As of December 31, 2011
Assets
$
Total Assets		$
Liabilities		$0
Equity
Total Liabilities and Equity		$
Upton Company Statement of Cash Flows For the Year Ended December 31, 2011
Cash Flows From Operating Activities:
$
Net Cash Flow from Operating Activities		$
Cash Flows From Investing Activities		0
Cash Flows From Financing Activities:
Net Cash Flow from Financing Activities
Net Change in Cash
Ending Cash Balance		$

3.

(c)	Upton is a corporation. The owners were issued 10,000 shares of $10 par common stock when they invested the $160,000 cash in the business. (For balance sheet be sure to list the assets and liabilities in order of their liquidity. All expenses and amounts to be deducted should be indicated with minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)
Upton Inc. Income Statement For the Year Ended December 31, 2011
Revenues	$
Expenses
$
Upton Inc. Statement of Changes in Stockholders' Equity For the Year Ended December 31, 2011
$
	$
Total Stockholders' Equity		$
Upton Inc. Balance Sheet As of December 31, 2011
Assets
$
Total Assets		$
Liabilities		$0
Stockholders' Equity
$
Total Paid-In Capital
Total Liabilities and Stockholders' Equity		$
Upton Inc. Statement of Cash Flows For the Year Ended December 31, 2011
Cash Flows From Operating Activities:
$
Net Cash Flow from Operating Activities		$
Cash Flows From Investing Activities		0
Cash Flows From Financing Activities:
Net Cash Flow from Financing Activities
Net Change in Cash
Ending Cash Balance		$