Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $82,500 cash from Busby and $167,500 from Beatty. During Year 1, the partnership earned $67,800 in cash revenues and paid $29,450 for cash expenses. Busby withdrew $2,900 cash from the business, and Beatty withdrew $2,700 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 income statement, capital statement, balance sheet, and statement of cash flows for B&B's Year 1 fiscal year. (For Statement of Cash Flows only, indicate amounts to be deducted and cash outflows with a minus sign. Round your profit sharing ratio to 2 decimal places and final answers to the nearest dollar amount.) B&B PARTNERSHIP Income Statement For the Year Ended December 31, Year 1
Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $82,500 cash from Busby and $167,500 from Beatty. During Year 1, the partnership earned $67,800 in cash revenues and paid $29,450 for cash expenses. Busby withdrew $2,900 cash from the business, and Beatty withdrew $2,700 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 income statement, capital statement, balance sheet, and statement of cash flows for B&B's Year 1 fiscal year. (For Statement of Cash Flows only, indicate amounts to be deducted and cash outflows with a minus sign. Round your profit sharing ratio to 2 decimal places and final answers to the nearest dollar amount.) B&B PARTNERSHIP Income Statement For the Year Ended December 31, Year 1
Chapter10: Partnerships: Formation, Operation, And Basis
Section: Chapter Questions
Problem 2BCRQ
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Please help me fill out these charts. Very confused.
Transcribed Image Text:Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $82,500 cash from Busby and
$167,500 from Beatty. During Year 1, the partnership earned $67,800 in cash revenues and paid $29,450 for cash expenses. Busby
withdrew $2,900 cash from the business, and Beatty withdrew $2,700 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 income statement, capital statement, balance sheet, and statement of cash flows for B&B's Year 1 fiscal year. (For
Statement of Cash Flows only, indicate amounts to be deducted and cash outflows with a minus sign. Round your profit sharing
ratio to 2 decimal places and final answers to the nearest dollar amount.)
B&B PARTNERSHIP
Income Statement
For the Year Ended December 31, Year 1
Transcribed Image Text:Beginning capital balance
Capital Statement
For the Year Ended December 31, Year 1
Ending capital balance
Assets
Cash
Total assets
Liabilities
Equity
F. Busby, Capital
J. Beatty, Capital
B&B PARTNERSHIP
Balance Sheet
As of December 31, Year 1
Total equity
Total liabilities and equity
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