The partnership of Bramble, Sunland, and Coronado engaged you to adjust its accounting records and convert...

 

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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.