The Rubble-Flintstone Company was started on January 1, Year 1 as a partnership. The initial investments from the two partners were $50,000 from Rubble and $30,000 from Flintstone. During Year 1, Rubble-Flintstone Company earned $70,000 in cash revenue, paid $42,000 in cash expenses and the partners withdrew $5,000 each for their personal use. The partnership agreement calls for equal sharing of net income or loss.Required:
Using only the above information, prepare an income statement, a capital statement, and a balance sheet for the Rubble-Flintstone Company.

Question

Quizplus · Accepted Answer

The Answer of The Rubble-Flintstone Company was started on January 1, Year 1 as a partnership. The initial investments from the two partners were $50,000 from Rubble and $30,000 from Flintstone. During Year 1, Rubble-Flintstone Company earned $70,000 in cash revenue, paid $42,000 in cash expenses and the partners withdrew $5,000 each for their personal use. The partnership agreement calls for equal sharing of net income or loss.Required:
Using only the above information, prepare an income statement, a capital statement, and a balance sheet for the Rubble-Flintstone Company.

The Rubble-Flintstone Company Was Started on January 1, Year 1