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.
What will be an ideal response?
| Rubble-Flintstone Partnership | |
| Income Statement | |
| For the Year Ended December 31, Year 1 | |
| Revenue | $ 70,000 |
| Less: Expenses | 42,000 |
| Net Income | $ 28,000 |
| ? | ? |
| Rubble-Flintstone Partnership | |
| Capital Statement | |
| For the Year Ended December 31, Year 1 | |
| ? | ? |
| Beginning capital balance | $ - |
| Add: Investments by owners | 80,000 |
| Add: Net income | 28,000 |
| Less: Withdrawals by owners | (10,000) |
| Ending capital balance | $ 98,000 |
| ? | ? |
| Rubble-Flintstone Partnership | |
| Balance Sheet | |
| As of December 31, Year 1 | |
| ? | ? |
| Assets | ? |
| Cash | $ 98,000 |
| ? | ? |
| Equity | ? |
| Rubble, Capital | $ 59,000 |
| Flintstone, Capital | 39,000 |
| Total Capital | $ 98,000 |
| ? | ? |
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