nl AT&T; Wi-Fi 10:23 PM ezto.mheducation.com connect. Ant 00 painas Faith Busby
ID: 2582715 • Letter: N
Question
nl AT&T; Wi-Fi 10:23 PM ezto.mheducation.com connect. Ant 00 painas Faith Busby and Jeremy Beatty started the B&B; partnership on January 1, 2016. The business acquired $101,400 cash from Busby and $158,600 from Beatty. During 2016, the partnership eamed $66,700 in cash revenues and paid $34,550 for cash expenses. Busby withdrew $3,300 cash from the business, and Beatty withdrew $3,100 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 2016 fiscal year (Statement of Cash Flows only, items to be deducted must be indicated with a negative amount. Round your profit sharing ratio to 2 decimal places and final answers to the nearest dollar amount.)Explanation / Answer
Income statement:
Revenue
66,700
Less: expenses
(34,550)
Net income
32,150
Capital statement:
Faith busby
Jeremy beatty
Total partnership
Capital balances, on Jan 1, 2016
101,400.00
158,600.00
260,000.00
Add: Net income
12,538.50
19,611.50
32,150.00
Less: withdrawals
(3,300.00)
(3,100.00)
(6,400.00)
Capital balances, on Dec 31, 2016
110,638.50
175,111.50
285,750.00
Balance sheet:
Cash
285,750.00
Total assets
285,750.00
Capital accounts
Faith busby
110,638.50
Jeremy beatty
175,111.50
285,750.00
Total capital and liabilities
285,750.00
Cash flow statement:
Operating activity:
Net income
32,150
Add/(less): Changes
0
Cash flow from operating activity
32,150
Investing activity:
0
Financing activity:
Proceeds from capital contributed
Faith busby
101,400.00
Jeremy beatty
158,600.00
260,000.00
Less: drawings
Faith busby
(3,300.00)
Jeremy beatty
(3,100.00)
(6,400.00)
Cash flow from financing activity
253,600.00
Net increase in cash
285,750.00
Cash at beginning
0
cash at the end of the period
285,750.00
Revenue
66,700
Less: expenses
(34,550)
Net income
32,150
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.