Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $93,000 cash from Busby and $207,000 from Beatty. During Year 1, the partnership earned $62,900 in cash revenues and paid $34,050 for cash expenses. Busby withdrew $2,900 cash from the business, and Beatty withdrew $4,700 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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question

Accounting

Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $93,000 cash from Busby and $207,000 from Beatty. During Year 1, the partnership earned $62,900 in cash revenues and paid $34,050 for cash expenses. Busby withdrew $2,900 cash from the business, and Beatty withdrew $4,700 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  balance sheet, and statement of cash flows for B&B’s Year 1 fiscal year.

 

Income
Statement
Capital
Statement
Balance Sheet
Stmt of Cash
Flows
Prepare a balance sheet. (Do not round intermediate calculations and
amount.)
B&B PARTNERSHIP
Balance Sheet
As of December 31, Year 1
Assets
0
Cash
Total assets
Liabilities
Equity
F. Busby, Capital
J. Beatty, Capital
Total equity
Total liabilities and equity
< Capital Statement
$
0
Str
Transcribed Image Text:Income Statement Capital Statement Balance Sheet Stmt of Cash Flows Prepare a balance sheet. (Do not round intermediate calculations and amount.) B&B PARTNERSHIP Balance Sheet As of December 31, Year 1 Assets 0 Cash Total assets Liabilities Equity F. Busby, Capital J. Beatty, Capital Total equity Total liabilities and equity < Capital Statement $ 0 Str
Income
Statement
Capital
Statement
Balance Sheet
Stmt of Cash
Flows
Prepare a statement of cash flows. (Cash outflows should be indicated wi
B&B PARTNERSHIP
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:
0
Net cash flow from investing activities
Cash flows from financing activities:
0
Net cash flow from financing activities
Net change in cash
0
Ending cash balance
0
Stmt o
< Balance Sheet
$
SA
$
LA
Transcribed Image Text:Income Statement Capital Statement Balance Sheet Stmt of Cash Flows Prepare a statement of cash flows. (Cash outflows should be indicated wi B&B PARTNERSHIP 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: 0 Net cash flow from investing activities Cash flows from financing activities: 0 Net cash flow from financing activities Net change in cash 0 Ending cash balance 0 Stmt o < Balance Sheet $ SA $ LA
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Partnership Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education