Question

Faith Busby and Jeremy Beatty started the B&B partnership on January 1, 2018. The business acquired $101.400 cash from Busby and $158.600 from Beatty. During 2018, the partnership eamed $66.500 in cash revenues and paid $26,300 for cash expenses. Busby withdrew $3.900 cash from the business, and Beatty withdrew $4.500 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 2018 fiscal year. Complete this question by entering your answers in the tabs below. Income Statement Capital Statement Balance Sheet Smt of Cash Fls Prepare the income statement. B&B PARTNERSHIP Income Statement For the Year Ended December 31, 2018 Income Statement Capital Statement >

Answer 1

Requirement (1) B&B PARTNERSHIP Income Statement For the Year Ended December 31, 2018 Revenues $ 66,500 Expenses $ 26,300 Net Income $ 40,200 Requirement (2) B&B PARTNERSHIP Capital Statement For the Year Ended December 31, 2018 Beginning Capital Balance $ Plus : Capital acquired from owner $ 260,000 Plus : Net Income $ 40,200 Less : Withdrawl by owner $ 8,400 Ending Capital Balance $ 291,800 Requirement (3) B&B PARTNERSHIP Balance sheet As of December 31, 2018 Assets Cash $ 291,800 $ 291,800 $ Total assets Liabilities Equity F busby,capital Beatty,capital $ $ $ 113,178 178,622 Total Equity Total liabilities and Equity $ 291,800 $ 291,800 Requirement (4) B&B PARTNERSHIP Statement of cash flows For the Year Ended December 31, 2018 Cash flow from operating activities : Receipts from revenues $ 66,500 Paid for expenses $ (26,300) Net cash flow from operating activities Cash flow from Investing activities : $ 40,200 $ $ $ $ Net Cash flow from Investing activities Cash flow from Financing activities : Proceeds from partners Paid for partners withdrawls Net Cash flow from financing activities Net change in cash Plus : Beginning cash Balance Ending cash Balance 260,000 (8,400 $ 251,600 $ 291,800 $ $ 291,800 Note : Comment down for any issues