Faith Busby and Jeremy Beatty started the B&B partnership on January 1, 2016. The business acquired $44,000

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Faith Busby and Jeremy Beatty started the B&B partnership on January 1, 2016. The business acquired $44,000 cash from Busby and $66,000 from Beatty. During 2016, the partnership earned $42,000 in cash revenues and paid $18,400 for cash expenses. Busby wit h drew $2,000 cash from the business, and Beatty withdrew $2,500 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, balance sheet, and statement of cash flows for B&B’s 2016 fiscal year.

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
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Fundamental Financial Accounting Concepts

ISBN: 978-0078025907

9th edition

Authors: Thomas Edmonds, Christopher Edmonds

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