Baxter and Mandy have been operating a partnership for a few years. The partnership has provided the trial balance below as at Dec 31, 2023. BAXDY CONSULTANTS TRIAL BALANCE AS AT DEC 31, 2023 Cash Supplies Equipment Accumulated depreciation - Equipment Accounts Payable Wages Payable Short-Term Note Payable Long-Term Note Payable Capital - Baxter Capital - Mandy Withdrawals, Baxter Withdrawals, Mandy Consulting Revenue Selling, General, & Administrative Expenses TOTAL 462,000 11,000 640,000 82,000 48,000 24,000 88,000 450,000 157,000 172,000 68,000 97,000 675,000 418,000 1,696,000 1,696,000 Additional Information: 1. The short-term notes payable is a 90-day 6% note that was issued on November 1, 2023. The accrued interest has not yet been recorded. 2. The long-term note payable is a non-interest-bearing note that was issued on January 1, 2023 for $600,000. An installment of $150,000 is due every Dec 15. The installment that was due Dec 15, 2023 was paid and properly recorded. 3. The partners have agreed to share profits and losses as follows: • Annual salaries allowances of $40,000 and $60,000 to Baxter and Mandy respectively. Interest allowances of 18% of the beginning of year capital balances. The balances shown on the trial balance are the beginning of year capital balances Any remaining balance shared in a 3:4 ratio to Baxter and Mandy, respectively. REQUIRED: Prepare a classified balance sheet for the partnership as at Dec 31, 2023
Baxter and Mandy have been operating a partnership for a few years. The partnership has provided the trial balance below as at Dec 31, 2023. BAXDY CONSULTANTS TRIAL BALANCE AS AT DEC 31, 2023 Cash Supplies Equipment Accumulated depreciation - Equipment Accounts Payable Wages Payable Short-Term Note Payable Long-Term Note Payable Capital - Baxter Capital - Mandy Withdrawals, Baxter Withdrawals, Mandy Consulting Revenue Selling, General, & Administrative Expenses TOTAL 462,000 11,000 640,000 82,000 48,000 24,000 88,000 450,000 157,000 172,000 68,000 97,000 675,000 418,000 1,696,000 1,696,000 Additional Information: 1. The short-term notes payable is a 90-day 6% note that was issued on November 1, 2023. The accrued interest has not yet been recorded. 2. The long-term note payable is a non-interest-bearing note that was issued on January 1, 2023 for $600,000. An installment of $150,000 is due every Dec 15. The installment that was due Dec 15, 2023 was paid and properly recorded. 3. The partners have agreed to share profits and losses as follows: • Annual salaries allowances of $40,000 and $60,000 to Baxter and Mandy respectively. Interest allowances of 18% of the beginning of year capital balances. The balances shown on the trial balance are the beginning of year capital balances Any remaining balance shared in a 3:4 ratio to Baxter and Mandy, respectively. REQUIRED: Prepare a classified balance sheet for the partnership as at Dec 31, 2023
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter12: Accounting For Partnerships And Limited Liability Companies
Section: Chapter Questions
Problem 4PB
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Question
Transcribed Image Text:Baxter and Mandy have been operating a partnership for a few years. The partnership has
provided the trial balance below as at Dec 31, 2023.
BAXDY CONSULTANTS
TRIAL BALANCE
AS AT DEC 31, 2023
Cash
Supplies
Equipment
Accumulated depreciation - Equipment
Accounts Payable
Wages Payable
Short-Term Note Payable
Long-Term Note Payable
Capital - Baxter
Capital - Mandy
Withdrawals, Baxter
Withdrawals, Mandy
Consulting Revenue
Selling, General, & Administrative Expenses
TOTAL
462,000
11,000
640,000
82,000
48,000
24,000
88,000
450,000
157,000
172,000
68,000
97,000
675,000
418,000
1,696,000
1,696,000
Additional Information:
1. The short-term notes payable is a 90-day 6% note that was issued on November 1, 2023.
The accrued interest has not yet been recorded.
2. The long-term note payable is a non-interest-bearing note that was issued on January 1,
2023 for $600,000. An installment of $150,000 is due every Dec 15. The installment that was
due Dec 15, 2023 was paid and properly recorded.
3. The partners have agreed to share profits and losses as follows:
•
Annual salaries allowances of $40,000 and $60,000 to Baxter and Mandy
respectively.
Interest allowances of 18% of the beginning of year capital balances. The
balances shown on the trial balance are the beginning of year capital
balances
Any remaining balance shared in a 3:4 ratio to Baxter and Mandy,
respectively.
REQUIRED: Prepare a classified balance sheet for the partnership as at Dec 31, 2023
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