Upton Company was started on January 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 $15,000.
Required:
| Prepare a 2011 income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows using each of the following assumptions. (Consider each assumption separately.) | ||
| (a) | Upton is a sole proprietorship owned by J. Upton. (For balance sheet be sure to list the assets and liabilities in order of their liquidity. All expenses and amounts to be deducted should be indicated with minus sign. Leave no cells blank – be certain to enter “0” wherever required. Omit the “$” sign in your response.) | |
| Upton Company Income Statements For the Year Ended December 31, 2011 |
||
| Revenues | $ | |
| Expenses | ||
| $ | ||
| Upton Company Capital Statement For the Year Ended December 31, 2011 |
||
| $ | ||
| Ending Capital Balance | $ | |
| Upton Company Balance Sheet As of December 31, 2011 |
||
| Assets | ||
| $ | ||
| Total Assets | $ | |
| Liabilities | $0 | |
| Equity | ||
| Total Liabilities and Equity | $ | |
| Upton Company Statement of Cash Flows For the Year Ended December 31, 2011 |
||
| Cash Flows From Operating Activities: | ||
| Upton Inc | |
| Financial Statements | |
| For the Year Ended December 31, 2011 | |
| Particular | Amount in $ |
| Revenue | 120000 |
| Less | |
| Expanses | -82000 |
| Income | 38000 |
| Statement of Changes in Stockholders’ Equity | |
| Particular | Amount in $ |
| Opeaning Balce | 0 |
| Addition | 160000 |
| Add: | |
| Profit of the year | 38000 |
| 198000 | |
| Less : Withdrowal | -15000 |
| Ending Balance | 183000 |
| Statement of Cash Flows | ||
| For the Year Ended December 31, 2011 | ||
| Particular | Amount in $ | Amount in $ |
| Cash Flows From Operating Activities: | ||
| Inflow from Revenues | 120000 | |
| Outflow for Expenses | -82000 | |
| Net Cash Flow from Operating Activities | 38000 | |
| Cash Flows From Investing Activities | 0 | |
| Cash Flows From Financing Activities: | ||
| Inflow from Partners | 160000 | |
| Outflow for Partners’ Withdrawals | -15000 | |
| Net Cash Flow from Financing Activities | 145000 | |
| Net Change in Cash | 183000 | |
| Plus: Beginning Cash Balance | 0 | |
| Ending Cash Balance | 183000 | |
| Upton Company | ||
| Financial Statements | ||
| Balance Sheet | ||
| As of December 31.2011 | ||
| Particular | Amount in $ | Amount in $ |
| Assets | ||
| Cash | 183000 | |
| Total Assets | 183000 | |
| Liabilities | ||
| Equity | ||
| Dan Upton, Capital | 106200 | |
| Nancy Upton, Capital | 76800 | |
| Total Liabilities and Equity | 183000 | |
| Capital Balance | |
| Particular | Amount in $ |
| Beginning Capital Balance | 0 |
| Plus: Capital Acquired from Owners | 160000 |
| Plus: Net Income | 38000 |
| Less: Withdrawals by Owners | -15000 |
| Ending Capital Balance | 183000 |
| Analysis Of Capital | Dan | Nancy | Total |
| Beginning Capital Balance | 0 | 0 | 0 |
| Investment | 100000 | 60000 | 160000 |
| Net Income | 15200 | 22800 | 38000 |
| Withdrowal | -9000 | -6000 | -15000 |
| Ending Capital Balance | 106200 | 76800 | 183000 |
| *Dan: $38,000 x 40% = $15,200 |
| Nancy: $38,000 x 60% = $22,800 |
