Majority of the responsibility for operating the business

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Reference no: EM131202167

Auto Spa is a partnership with two partners, Sue Moore and Jim Pounds. Moore invested $104,650 and Pounds invested $56,350 of the $161,000 cash that was used to start the business. Pounds was expected to assume the vast majority of the responsibility for operating the business. The partnership agreement called for Pounds to receive 65 percent of the profits and Moore the remaining 35 percent. With regard to the $6,000 distribution, Pounds withdrew $1,800 from the business and Moore withdrew $4,200. b-1. Prepare a income statement for 2014. b-2. Prepare a capital statement (statement of changes in equity) for 2014. b-3. Prepare a balance sheet for 2014 b-4. Prepare a statement of cash flows for 2014. (Amounts to be deducted should be indicated with minus sign.)

Reference no: EM131202167

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