The Bristol-Fuller Partnership Was Formed on January 1, Year 1

Essay

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. For 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.