Question
In: Accounting
Faith Busby and Jeremy Beatty started the B&B partnership on January 1, 2018. The business acquired...
Faith Busby and Jeremy Beatty started the B&B partnership on January 1, 2018. The business acquired $86,800 cash from Busby and $193,200 from Beatty. During 2018, the partnership earned $68,200 in cash revenues and paid $43,150 for cash expenses. Busby withdrew $3,500 cash from the business, and Beatty withdrew $4,700 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 (statement of changes in equity), balance sheet, and statement of cash flows for B&B’s 2018 fiscal year.
Solutions
ekkarill92 answered 10 months agoRelated Solutions
Faith Busby and Jeremy Beatty started the B&B partnership on January 1, 2018. The business acquired...
Faith Busby and Jeremy Beatty started the B&B partnership on
January 1, 2018. The business acquired $65,100 cash from Busby and
$144,900 from Beatty. During 2018, the partnership earned $63,900
in cash revenues and paid $32,850 for cash expenses. Busby withdrew
$2,400 cash from the business, and Beatty withdrew $3,900 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 an income...
Faith Busby and Jeremy Beatty started the B&B partnership on January 1, 2018. The business acquired...
Faith Busby and Jeremy Beatty started the B&B partnership on
January 1, 2018. The business acquired $86,800 cash from Busby and
$193,200 from Beatty. During 2018, the partnership earned $68,200
in cash revenues and paid $43,150 for cash expenses. Busby withdrew
$3,500 cash from the business, and Beatty withdrew $4,700 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...
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eight-year useful life and a zero salvage value. The manufacturing
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Vernon Manufacturing Company was started on January 1, 2018, when it acquired $83,000 cash by issuing...
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when it acquired $83,000 cash by issuing common stock. Vernon
immediately purchased office furniture and manufacturing equipment
costing $9,100 and $24,700, respectively. The office furniture had
an eight-year useful life and a zero salvage value. The
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cash by issuing common stock. Rooney immediately purchased office
furniture and manufacturing equipment costing $9,100 and $26,600,
respectively. The office furniture had an eight-year useful life
and a zero salvage value. The manufacturing equipment had a $3,500
salvage value and an expected useful life of three years. The
company paid $11,500 for salaries of administrative personnel and
$15,400 for wages to production personnel. Finally, the company
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eight-year useful life and a zero salvage value. The manufacturing
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