Question: Wes Poole and Ross King started the PK partnership on January 1, 2010. The business acquired $60,000 cash from Poole and $90,000 from King. During

Wes Poole and Ross King started the PK partnership on January 1, 2010. The business acquired $60,000 cash from Poole and $90,000 from King. During 2010, the partnership earned $56,000 in cash revenues and paid $32,000 for cash expenses. Poole withdrew $2,000 cash from the business, and King withdrew $3,000 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 the PK partnership for the 2010 fiscal year.

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Transactions Cash Contributions W Poole 60000 40 R King 90000 60 Total 150000 100 Revenues 56000 Exp... View full answer

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