A sole proprietorship was started on January 1, Year 1, when it received $50,000 cash from...

 

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A sole proprietorship was started on January 1, Year 1, when it received $50,000 cash from Marlin Jones, the owner. During Year 1, the company earned $39,200 in cash revenues and paid $22,940 in cash expenses. Jones withdrew $4,400 cash from the business during Year 1. Required Prepare the income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows for Jones's Year 1 fiscal year. A sole proprietorship was started on January 1, Year 1, when it received $50,000 cash from Marlin Jones, the owner. During Year 1, the company earned $39,200 in cash revenues and paid $22,940 in cash expenses. Jones withdrew $4,400 cash from the business during Year 1. Required Prepare the income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows for Jones's Year 1 fiscal year.

Answer rating: 100% (QA)

To prepare the financial statements for the sole proprietorship for Year 1 we will start with the in... View the full answer