Question
In: Accounting
Assume that a business was started on January 1, 2003 when it acquired $60,000 cash from...
Assume that a business was started on January 1, 2003 when it
acquired $60,000 cash from its owner(s). During 2003 the
company generated $29,000 of cash services revenue,
incurred $19,000 of cash expenses, and distributed $4,000
cash to the owner(s).
•
Prepare a statement of changes in equity for this partnership:
–
Carl Link and Bill Morgan established the business as a
partnership. Link contributed 60% of the capital, Morgan
40%. The partners agreed to share profits and withdrawals
in proportion to their capital investments
Solutions
Expert Solution
| Statement of changes in equity | |||
| Carl Link | Bill Morgan | Total | |
| Capital Balance, Jan 1 | - | - | - |
| Investment | 36,000.00 | 24,000.00 | 60,000.00 |
| Net Income | 6,000.00 | 4,000.00 | 10,000.00 |
| Withdrawals | (2,400.00) | (1,600.00) | (4,000.00) |
| Capital Balance, Dec 1 | 39,600.00 | 26,400.00 | 66,000.00 |
Workings:
| Services Revenue | 29,000 |
| Expenses | 19,000 |
| Net Income | 10,000 |
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ekkarill92 answered 1 year agoRelated Solutions
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