The partnership of Bramble, Sunland, and Coronado engaged you to adjust its accounting records and convert...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The partnership of Bramble, Sunland, and Coronado engaged you to adjust its accounting records and convert them uniformly to the accrual basis in anticipation of admitting Kerns as a new partner. Some accounts are on the accrual basis and some are on the cash basis. The partnership's books were closed at December 31, 2024, by the bookkeeper, who prepared the general ledger trial balance that appears as follows: Cash Accounts Receivable Inventory Land Buildings Allowance for Depreciation of Buildings Equipment Allowance for Depreciation of Equipment Goodwill Bramble, Sunland, and Coronado General Ledger Trial Balance December 31, 2024 Accounts Payable Allowance for Future Inventory Losses Bramble, Capital Sunland, Capital Coronado, Capital Totals Your inquiries disclose the following: 1. Debit $15,200 43,000 27,500 9,000 52,600 56,100 4,700 $208,100 Credit $6,200 5,500 58,700 8,300 38,200 60,900 30,300 $208,100 The partnership was organized on January 1, 2023. No provision was made in the partnership agreement for the allocation of partnership profits and losses. During 2023, profits were allocated equally among the partners. The partnership agreement was amended, effective January 1, 2024, to provide for the following profit and loss ratio: Bramble, 40%; Sunland, 40%; and Coronado, 20%. The amended partnership agreement also stated that the accounting records were to be maintained on the accrual basis and that any adjustments necessary for 2023 should be allocated according to the 2023 profit allocation agreement. 2. Prepaid insurance Advances from customers Accrued interest expense 3. 4. The following amounts were not recorded as prepayments or accruals. 5. The advances from customers were recorded as sales in the year the cash was received. 6. 2024 accounts 2023 accounts December 31 2024 2023 $700 $900 800 1,600 In 2024, the partnership recorded a provision of $8,300 for anticipated declines in inventory prices. You convinced the partners that the provision was unnecessary and should be removed from the books. The partnership charged equipment purchased for $4,800 on January 1, 2024, to expense. This equipment has an estimated life of 10 years and an estimated salvage value of $400. The partnership depreciates its capitalized equipment using the declining balance method at twice the straight-line depreciation rate. 2024 The partners agreed to establish an allowance for doubtful accounts at 2% of current accounts receivable and 5% of past-due accounts. At December 31, 2023, the partnership had $51,200 of accounts receivable, of which only $3,800 was past due. At December 31, 2024, 20% of accounts receivable was past due, of which $3,800 represented sales made in 2023 and was considered collectible. The partnership had written off uncollectible accounts in the year the accounts became worthless as follows: $800 900 Accounts Written Off In 400 2023 $300 Goodwill was recorded on the books in 2024 and credited to the partners' capital accounts in the profit and loss ratio in recognition of an increase in the value of the business resulting from improved sales volume. The partners agreed goodwill before admitting the new partner. write off the Prepare a worksheet showing the adjustments and the adjusted trial balance for the partnership on the accrual basis at December 31, 2024. All adjustments affecting income should be made directly to partners' capital accounts. Supporting computations should be in good form. (Do not prepare formal financial statements or formal journal entries.) (Round answers to O decimal places, e.g. 5,125.) Dr. Unadjusted Balance Bramble, Sunland, and Coronado Partnership Adjusted Trial Balance December 31, 2024 Cr. Dr Adjustment Dr. Adjusted Balance 12/31/2024 Cr. < < < ८ ८ < ८ < < < < < < ‒‒‒‒‒‒‒‒‒‒‒‒‒ -‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒ \¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ --‒‒‒‒‒‒‒‒‒‒‒‒‒‒ -‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒ ‒‒‒‒‒‒‒‒‒‒‒‒‒‒ + जी $ धी जी $ S Q Cr. The partnership of Bramble, Sunland, and Coronado engaged you to adjust its accounting records and convert them uniformly to the accrual basis in anticipation of admitting Kerns as a new partner. Some accounts are on the accrual basis and some are on the cash basis. The partnership's books were closed at December 31, 2024, by the bookkeeper, who prepared the general ledger trial balance that appears as follows: Cash Accounts Receivable Inventory Land Buildings Allowance for Depreciation of Buildings Equipment Allowance for Depreciation of Equipment Goodwill Bramble, Sunland, and Coronado General Ledger Trial Balance December 31, 2024 Accounts Payable Allowance for Future Inventory Losses Bramble, Capital Sunland, Capital Coronado, Capital Totals Your inquiries disclose the following: 1. Debit $15,200 43,000 27,500 9,000 52,600 56,100 4,700 $208,100 Credit $6,200 5,500 58,700 8,300 38,200 60,900 30,300 $208,100 The partnership was organized on January 1, 2023. No provision was made in the partnership agreement for the allocation of partnership profits and losses. During 2023, profits were allocated equally among the partners. The partnership agreement was amended, effective January 1, 2024, to provide for the following profit and loss ratio: Bramble, 40%; Sunland, 40%; and Coronado, 20%. The amended partnership agreement also stated that the accounting records were to be maintained on the accrual basis and that any adjustments necessary for 2023 should be allocated according to the 2023 profit allocation agreement. 2. Prepaid insurance Advances from customers Accrued interest expense 3. 4. The following amounts were not recorded as prepayments or accruals. 5. The advances from customers were recorded as sales in the year the cash was received. 6. 2024 accounts 2023 accounts December 31 2024 2023 $700 $900 800 1,600 In 2024, the partnership recorded a provision of $8,300 for anticipated declines in inventory prices. You convinced the partners that the provision was unnecessary and should be removed from the books. The partnership charged equipment purchased for $4,800 on January 1, 2024, to expense. This equipment has an estimated life of 10 years and an estimated salvage value of $400. The partnership depreciates its capitalized equipment using the declining balance method at twice the straight-line depreciation rate. 2024 The partners agreed to establish an allowance for doubtful accounts at 2% of current accounts receivable and 5% of past-due accounts. At December 31, 2023, the partnership had $51,200 of accounts receivable, of which only $3,800 was past due. At December 31, 2024, 20% of accounts receivable was past due, of which $3,800 represented sales made in 2023 and was considered collectible. The partnership had written off uncollectible accounts in the year the accounts became worthless as follows: $800 900 Accounts Written Off In 400 2023 $300 Goodwill was recorded on the books in 2024 and credited to the partners' capital accounts in the profit and loss ratio in recognition of an increase in the value of the business resulting from improved sales volume. The partners agreed goodwill before admitting the new partner. write off the Prepare a worksheet showing the adjustments and the adjusted trial balance for the partnership on the accrual basis at December 31, 2024. All adjustments affecting income should be made directly to partners' capital accounts. Supporting computations should be in good form. (Do not prepare formal financial statements or formal journal entries.) (Round answers to O decimal places, e.g. 5,125.) Dr. Unadjusted Balance Bramble, Sunland, and Coronado Partnership Adjusted Trial Balance December 31, 2024 Cr. Dr Adjustment Dr. Adjusted Balance 12/31/2024 Cr. < < < ८ ८ < ८ < < < < < < ‒‒‒‒‒‒‒‒‒‒‒‒‒ -‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒ \¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ --‒‒‒‒‒‒‒‒‒‒‒‒‒‒ -‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒ ‒‒‒‒‒‒‒‒‒‒‒‒‒‒ + जी $ धी जी $ S Q Cr.
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Mc Jah Bhd holds simple equity investments in several companies. The company uses the fair value method to account for its investment assets. The cost and fair value of each investment in December...
-
The partnership of Cain, Gallo, and Hamm engaged you to adjust its accounting records and convert them uniformly to the accrual basis in anticipation of admitting Kerns as a new partner. Some...
-
The partnership of Cain, Gallo, and Hamm engaged you to adjust its accounting records and convert them uniformly to the accrual basis in anticipation of admitting Kerns as a new partner. Some...
-
You invested $1000 in Sinoland Bank stock when Sinoland/US Dollar exchange rate was 10:1, and you received exactly 200 local shares of the stock. The stock price rises 23% in local currency terms,...
-
The following trial balance was prepared for Tile, Etc., Inc. on December 31, 2017, after the closing entries were posted: Account Title...
-
For LaForge Systems, whose financial statements are given in Problem 2, show the adjustments from the current levels of CFO (which is $427 million), EBIT ($605 million), and EBITDA ($785 million) to...
-
Yale Corporation issued to Zap Corporation \(\$ 60,000,8 \%\) (cash interest payable semiannually on July 1 and January 1) 10 -year bonds dated and sold on January 1,2020 . If the bonds were sold at...
-
The Soft Toys Company has collected information on fixed and variable costs for four potential plant locations. a. Plot the total cost curves for the four plant locations on a single graph. b....
-
Solve clearly. A $42,000 loan is repaid with semiannual payments of $5,000. What is the size of the final payment if money is borrowed at 6% compounded semiannually? $4,114.35 O $4,004.94 $4,227.79 O...
-
Axon Corporation, which has three divisions, is preparing its sales budget. Each division expects a different growth rate because economic conditions vary in different regions of the country. The...
-
LAB 9 STREAMS ANSWER SHEET G. J. http://www.google.com/imgres?imgurl=http://www.igsb.uiowa.edu/ Refer to the image above. Match the areas marked "A" through "J" with the correct stream term. Use only...
-
A person wrote letters to \(n\) addressees, one letter in each envelope, and then, at random, wrote one of the \(n\) addresses on each envelope. What is the probability that at least one of the...
-
A quality control inspector examines items in a lot consisting of \(m\) items of first grade and \(n\) second-grade items. An inspection of the first \(b\) items chosen at random from the lot showed...
-
Prove that if \(F(x)\) is a distribution function, then for any \(h eq 0\) the functions \[ \Phi(x)=\frac{1}{h} \int_{x}^{x+h} F(x) d x, \quad \Psi(x)=\frac{1}{2 h} \int_{x-h}^{x+h} F(x) d x \] are...
-
Golf Technologies, Inc. (GTI) relies on high-level scientific testing to design golf clubs that provide larger sweet spots, resulting in fewer missed hits and maximum yardage. In the last year, GTI...
-
What is the impact of Rule 202-Auditing Standards on the auditor?
-
What is the role of ethics in professional competence and the supply chain? Provide a specific example.
-
The Cholesterol Level data sets give cholesterol levels of heart attack patients. Cholesterol measures are taken 2, 4, and 14 days aft er a patient has suffered a heart attack. Is there a significant...
-
The accounts of Pyle Company and its subsidiary, Stern Company, are summarized below as of December 31, 2024: Pyle Company made the following open- market purchase and sale of Stern Company common...
-
Padilla Company acquired 80% of the outstanding common stock of Skon Company on January 1, 2022, for $132,000. At the date of purchase, Skon Company had a balance in its $2 par value common stock...
-
A 90% interest in Saxton Corporation was purchased by Palm Incorporated on January 2, 2024. The capital stock balance of Saxton Corporation was $3,000,000 on this date, and the balance in retained...
-
Paymore Shoes acquired 80 percent of the voting stock of Spire Footwear on February 1, 2014, for \($21\) million. The fair value of the noncontrolling interest at the acquisition date was \($3\)...
-
Pacific Athletic Corporation owns all of the voting stock of Solovair Apparel. Acquisition cost was \($10\) million in excess of Solovairs book value of \($2\) million, and the excess was attributed...
-
Peninsula Industries and Seaport Company, a 90 percent owned subsidiary, engage in extensive intercompany transactions involving raw materials, component parts, and completed products. Peninsula...
Study smarter with the SolutionInn App