Faith Busby and Jeremy Beatty started the BB partnership on

Faith Busby and Jeremy Beatty started the B&B; partnership on January 1, 2016. The business acquired $94,500 cash from Busby and $175,500 from Beatty. During 2016, the partnership earned S60,500 in cash revenues and paid $40,200 for cash expenses. Busby withdrew $3,300 cash from the business, and Beaty withdrew $5,800 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. (Statement of Cash Flows only, items to be deducted must be indicated with a negative amount. Round your profit sharing ratio to 2 decimal places and final answers to the nearest dollar amount.) B&B; PARTNERSHIP Income Statement For the Year Ended December 31, 2016 B&B; PARTNERSHIP Capital Statement For the Year Ended December 31, 2016 Begining capital balance Ending capital balance

Solution

Solution :

B&B Partnership
Income Statement
For the year ended December 31,2016
Revenues	$60,500.00
Less: Expenses	$40,200.00
Net Income	$20,300.00