Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $85,800 cash from Busby and $134,200 from Beatty. During Year 1, the partnership earned $61,000 in cash revenues and paid $43,250 for cash expenses. Busby withdrew $3,400 cash from the business, and Beatty withdrew $3,000 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. Capital Statement Balance Sheet Stmt of Cash Flows Income Statement

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter21: Partnerships
Section: Chapter Questions
Problem 2BCRQ
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Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $85,800 cash from Busby and
$134,200 from Beatty. During Year 1, the partnership earned $61,000 in cash revenues and paid $43,250 for cash expenses. Busby
withdrew $3,400 cash from the business, and Beatty withdrew $3,000 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.
Income
Statement
Capital
Stmt of Cash
Balance Sheet
Statement
Flows
Prepare the income statement.
B&B PARTNERSHIP
Income Statement
For the Year Ended December 31, Year 1
Transcribed Image Text:Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $85,800 cash from Busby and $134,200 from Beatty. During Year 1, the partnership earned $61,000 in cash revenues and paid $43,250 for cash expenses. Busby withdrew $3,400 cash from the business, and Beatty withdrew $3,000 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. Income Statement Capital Stmt of Cash Balance Sheet Statement Flows Prepare the income statement. B&B PARTNERSHIP Income Statement For the Year Ended December 31, Year 1
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