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,...
-
Using 1-bromobutane and any necessary organic or inorganic reagents, suggest efficient syntheses of each of the following alcohols: (a) 1-Pentanol (d) 3-Methyl-3-heptanol (b) 2-Hexanol (e)...
-
Blanchard Company's accounts receivable subsidiary ledger reveals the following information: Blanchard Company's receivable collection experience indicates that, on average, losses have occurred as...
-
Fly Fast Ltd operates a small charter plane operation in South West Queensland. The airline provides a fly-in fly-out service to mining operations in this area. Currently Fly Fast operates one plane...
-
Kathleen and Mary (KM) operate a small coffee shop. They produce regular coffee available from many other similar businesses and also produce gourmet coffee for special orders. Their accountant...
-
1. A hockey puck is sitting on an infinitely long ice rink. A hockey player gives the puck a strong whack with his hockey stick and the puck begins moving. Assuming the ice has no friction, what is...
-
2. A double-spool turbofan engine is used to power an aircraft flying at speed of 250 m/s at an altitude of 11,000 m, where ambient temperature is -50C and pressure is 22.7 kPa. As shown below, the...
-
Olivia, aged 47, is employed by a large multinational company working in software development. She is Irish resident for tax purposes. Olivia receives an annual salary of 95,000 and an annual bonus...
-
Value investor Mohnish Pabrai ( 2 0 0 7 ) wrote the Dhandho Investor: The Low - Risk Value Method to High Returns. Pabrai sums up the Dhandho approach as heads, I win; tails, I dont lose much!...
-
Ivanhoe Inc. produces three separate products from a common process costing $100,900. Each of the products can be sold at the split- off point or can be processed further and then sold for a higher...
-
Required length: 1,500 words The referencing style for this subject isHarvard. Details of task: The importance of corporate governance became dramatically clear since the early 2000s as result of a...
-
Answer the questions using the resources provided below. Write down one or two of most significant [central, useful, meaningful, surprising, disturbing] things you have learned from the readings in...
-
Business strategist Michael Porter (Harvard Business School) introduces us to the concept of shared value in his TED talk. He defines shared value as "when we ... create social value and economic...
-
2. ([0,1], the wreat s space of all complex valued continuous functions on [011]. het Bige c[011] ; x = 0 we define (2 +9) (+) = 8(t) + g(t), + te [ou] (x8) (t)=x.8 (t) * + [01] For te cron], define...
-
Suppose you are comparing just two means. Among the possible statistics you could use is the difference in means, the MAD, or the max min (the difference between the largest mean and the smallest...
-
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...
-
If the angle between vectors \(\vec{A}\) and \(\vec{B}\) is \(110^{\circ}\) and if \(A=1.7 \mathrm{~N}\) and \(B=2.0 \mathrm{~m}\), what is the value of \(\vec{A} \cdot \vec{B}\) ?
-
You throw a textbook to a friend who is at their dormitory window \(2.2 \mathrm{~m}\) above you. You are standing \(4.0 \mathrm{~m}\) away from the building and your throw is perfectly made such that...
-
A traveller walks \(30 \mathrm{~m}\) along a train platform, dragging their suitcase behind them using a strap attached to the top. The traveller's hand is \(0.25 \mathrm{~m}\) above the top of the...
Study smarter with the SolutionInn App