Calloway Company was started on January 1 2012 when

the
Calloway Company was started on January 1, 2012, when the owners invested $40,000 cash in
the business. During 2012, the company earned cash revenues of $18,000 and incurred cash
expenses of $12,500. The company also paid cash distributions of $3,000.RequiredPrepare the
2012 income statement, capital statement (statement of changes in equity), balance sheet, and
statement of cash flows using each of the following assumptions. a. Calloway is a sole
proprietorship owned by Macy Calloway.b. Calloway is a partnership with two partners, Macy
Calloway and Artie Calloway. Macy Calloway invested $25,000 and Artie Calloway invested
$15,000 of the $40,000 cash that was used to start the business. A. Calloway was expected to
assume the vast majority of the responsibility for operating the business. The partnership
agreement called for A. Calloway to receive 60 percent of the profits and M. Calloway to get the
remaining 40 percent. With regard to the $3,000 distribution, A. Calloway withdrew $1,200 from
the business and M. Calloway withdrew $1,800.c. Calloway is a corporation. It issued 5,000
shares of $5 par common stock for $40,000 cash to start the business.View Solution:
Calloway Company was started on January 1 2012 when the
SOLUTION-- http://expertanswer.online/downloads/calloway-company-was-started-on-
january-1-2012-when-the/

See Answer here expertanswer.online

Powered by TCPDF (www.tcpdf.org)