The Harlan-Wells Company Was Started on January 1, 2012 as a Partnership

question 63

Essay

The Harlan-Wells Company was started on January 1, 2012 as a partnership. The initial investments from the two partners were $20,000 each. During 2012, the Harlan-Wells Company earned $30,000 in cash revenue and paid $20,000 in cash expenses and the partners withdrew $1,000 each for their personal use. The partnership agreement calls for equal sharing of net income or loss. Using only the above information, prepare an income statement, a capital statement, and a balance sheet for the Harlan-Wells Company.

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Definitions:

Whigs

A political party active in the mid-19th century in the United States that opposed the policies of the Democratic Party and advocated for modernization and economic protectionism.

American Politics

The political structure, practices, and activity within the United States, characterized by a federal system and a two-party system.

Swing Election

An election in which the outcome is considered uncertain, and the votes of swing voters could determine the result, often leading to significant changes in governance.

Wave Election

An election where one political party makes significant gains, often resulting in a dramatic shift in the political landscape.