Upton Co. was started on 1-1-2011, when the owners invested $160,000 cash in the business. During 2011, the company earned cash revenues of 120,000 and incurred cash expenses of $82,000. The company also paid cash distributions of $15,000.
Required
Prepare a 2011 income statement, capital statement , balance sheet, and statement of cash flows using each of the following assumptions.
a. Upton is a sole proprietorship owned by J. Upton.
b. Upton is a partnership with 2 partners, Dan and Nancy Upton. Dan invested $100,000 and Nancy invested $60,000 of the $160,000 cash that was used to start the business. The partnership agreement called for Nancy to receive 60% of the profits and Dan the remaining 40%. With regard to the $15,000 distribution, Nancy withdrew $6,000 from the business and Dan withdrew $9,000.
c. Upton is a corporation. The owners were issued 10,000 shares of $10 par common stock when they invested the $160,000 cash in the business.