Question

I NEED THE BALANCE SHEET & STATEMENT OF CASH FLOWS PLEASE!!!!!!

Faith Busby and Jeremy Beatty started the B&B partnership on January 1, 2018. The business acquired $90,000 cash from Busby and $160,000 from Beatty. During 2018, the partnership earned $65,100 in cash revenues and paid $41,200 for cash expenses. Busby withdrew $1,900 cash from the business, and Beatty withdrew $5,900 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 a balance sheet, and statement of cash flows for B&B’s 2018 fiscal year.

• Balance Sheet
• Smt of Cash Fls

Prepare a balance sheet.

	B&B PARTNERSHIP Balance Sheet As of December 31, 2018 Assets Cash $266,100 Total assets $266,100 Liabilities 0 Equity F. Busby, Capital J. Beatty, Capital Total equity 0 Total liabilities and equity $0

• Smt of Cash Fls

Prepare a statement of cash flows. (Negative amounts should be indicated by a minus sign.)

	B&B PARTNERSHIP Statement of Cash Flows For the Year Ended December 31, 2018 Cash flows from operating activities: Net cash flow from operating activities $0 Cash flows from investing activities Net cash flow from investing activities $0 Cash flows from financing activities Net cash flow from financing activities 0 Net change in cash 0 Ending cash balance $0

Answer 1

Answer with working notes is given below

B&B PARTNERSHIP Balance Sheet As of December 31, 2018 Assets Cash $266,100 $266,100 Total assets Liabilities Equity F. Busby, Capital J. Beatty, Capital $96,704 $169,396 $266,100 Total equity Total liabilities and equity $266,100 $266,100 Working note: Capital investment Net profit ( $65,100-$41,200) Less: Drawings by partners Closing Capital balance F. Busby $90,000 $8,604 -$1,900 $96,704 K. Beatty $160,000 $15,296 (Ratio of 9:16) $5,900 $169,396 B&B PARTNERSHIP Statement of Cash Flows For the Year Ended December 31, 2018 Cash flows from operating activities: Cash received from sales $65,100 Cash paid for expenses -$41,200 Net cash flow from operating activities $23,900 Cash flows from investing activities: Net cash flow from investing activities Cash flows from financing activities: Capital investment by partners Drawings by partners Net cash flow from financing activities Net change in cash $250,000 -$7,800 $242,200 $266,100 Ending cash balance $266,100