The Ballard-Frye partnership was formed on January 1, 2013, when Ballard and Frye invested $80,000 and $60,000 cash in the partnership, respectively. During 2013, the partnership earned $150,000 in cash revenues and paid $104,000 in cash expenses. Ballard withdrew $10,000 cash from the business during the year, and Frye withdrew $8,000. The partnership agreement specified that net income should be allocated equally to the partners' capital accounts.
Required:
Indicate how each of the transactions and events for the Ballard-Frye partnership affects the financial statements model, below. Indicate dollar amounts of increases and decreases. For cash flows, indicate whether each is an operating activity (OA), investing activity (IA), or financing activity (FA). Indicate NA if an element is not affected by a transaction.

Question

Quizplus · Accepted Answer

The Answer of The Ballard-Frye partnership was formed on January 1, 2013, when Ballard and Frye invested $80,000 and $60,000 cash in the partnership, respectively. During 2013, the partnership earned $150,000 in cash revenues and paid $104,000 in cash expenses. Ballard withdrew $10,000 cash from the business during the year, and Frye withdrew $8,000. The partnership agreement specified that net income should be allocated equally to the partners' capital accounts.
Required:
Indicate how each of the transactions and events for the Ballard-Frye partnership affects the financial statements model, below. Indicate dollar amounts of increases and decreases. For cash flows, indicate whether each is an operating activity (OA), investing activity (IA), or financing activity (FA). Indicate NA if an element is not affected by a transaction.

The Ballard-Frye Partnership Was Formed on January 1, 2013, When