Current Attempt in Progress The partnership of Marigold, Swifty, and Nash 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: Marigold, Swifty, and Nash General Ledger Trial Balance December 31, 2024 Debit Credit Cash $13,900 Accounts Receivable 41,000 Inventory 27,500 Land 8,200 Buildings 51,100 Allowance for Depreciation of Buildings $5,800 Equipment 53,200 Allowance for Depreciation of Equipment 5,900 Goodwill 5,100 Accounts Payable 48,200 Allowance for Future Inventory Losses 8,800 Marigold, Capital 36,700 Swifty, Capital 62,200 Nash, Capital 32,400 Totals $200,000 $200,000 Your inquiries disclose the following: 1. 2. 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: Marigold, 40%; Swifty, 40%; and Nash, 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. The following amounts were not recorded as prepayments or accruals. December 31 2024 2023 Prepaid insurance $700 $900 Advances from customers 800 1,600 Accrued interest expense - 400 The advances from customers were recorded as sales in the year the cash was received. 3. In 2024, the partnership recorded a provision of $8,800 for anticipated declines in inventory prices. You convinced the partners that the provision was unnecessary and should be removed from the books. 4. The partnership charged equipment purchased for $4,000 on January 1, 2024, to expense. This equipment has an estimated life of 10 years and an estimated salvage value of $300. The partnership depreciates its capitalized equipment using the 5. 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 $51,600 of accounts receivable, of which only $4,100 was past due. At December 31, 2024, 20% of accounts receivable was past due, of which $4,100 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: 2024 accounts 2023 accounts 6. Accounts Written Off In 2023 2024 $900 900 $200 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 to write off the goodwill before admitting the new partner. 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 hould be in good form. (Do not prepare formal financial statements or formal journal entries.) (Round answers to O decimal places, e.g. 5,125.) 5.125) Cash Accounts Receivable Inventory Land Buildings Allowance for Depreciation of Bulidinga Equipment Allowance for Depreciation of Equipment Goodwill Accounts Payable Allowance for Future Inventory Losses Marigold, Capital Swifty, Capital Nash Capital Prepaid Insurance Advances from Customers Allowance for Doubtful Accounts Unadjusted Balance Dr. $ Cr. Marigold, Swifty, and Nash Partnership Adjusted Trial Balance December 31, 2024 $ Adjustment Dr $ $ Dr. Adjusted Balance 12/31/2024 S Cr.