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Your inquiries disclose the following: 1 . The partnership was organized on January 1 , 2 0 2 3 . No provision was made in
Your inquiries disclose the following:
The partnership was organized on January No provision was made in the partnership agreement for the allocation of partnership profits and losses. During profits were allocated equally among the partners. The partnership agreement was amended, effective January to provide for the following profit and loss ratio: Bonita, ; Windsor, ; and Sheridan, The amended partnership agreement also stated that the accounting records were to be maintained on the accrual basis and that any adjustments necessary for should be allocated according to the profit allocation agreement.
The following amounts were not recorded as prepayments or accruals.
December
Prepaid insurance
$
$
Advances from customers
Accrued interest expense
The advances from customers were recorded as sales in the year the cash was received.
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