The Bristol-Fuller partnership was formed on January 1, Year 1, when Bristol and Fuller invested $40,000 and $30,000 cash in the partnership, respectively. During Year 1, the partnership earned $75,000 in cash revenues and paid $52,000 in cash expenses. Bristol withdrew $5,000 cash from the business during the year, and Fuller withdrew $4,000. 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 Bristol partnership affects the financial statements model, below. Indicate dollar amounts of increases and decreases. With regards to the statement of 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.
What will be an ideal response?
The cash investments by the partners are reported as cash inflows and the cash withdrawals by the partners are reported as cash outflows in the financing activities section of the statement of cash flows.
You might also like to view...
Audit sampling is the application of an audit procedure to less than 100 percent of the items within an account balance or class of transactions for the purpose of evaluating some characteristic
a. True b. False Indicate whether the statement is true or false
"Loose Cannon" Buchanan said and did whatever he wanted, which was usually at odds with the behavior of the rest of the business faculty. An appropriate mechanism for bringing him into alignment with the rest of the team is:
A) Issuing superordinate goals. B) Creating a formalized set of rules. C) Making sure he was in close proximity to the rest of the faculty. D) Have the team adopt his aberrant behavioral patterns.
Frankenberger Company, which uses a weighted-average process-costing system, had 7,000 units in production at the end of the current period that were 60% complete. Material A is introduced at the beginning of the process; material B is introduced at the end of the process; and conversion cost is introduced evenly throughout manufacturing. Equivalent-unit production costs follow.Material A: $12.50Material B: $2.00Conversion cost: $6.60The cost of the company's ending work-in-process inventory is:
A. $115,220. B. $123,620. C. $147,700. D. $88,620. E. None of the answers is correct.
Economies of scale means that the percentage return on a financial transaction rises as the size of the transaction rises
Indicate whether the statement is true or false