B C M&S Partnership 1a Gross receipts Gross receipts or sales 534.410 b Less returns and allowances Cost of goods sold (attach Form 1125-A) Account Trial Balance December 31, 2023 Debit Credit Cash 23,140 Income Accounts and notes receivable 29,480 Furniture 68,910 8 Accumulated depreciation-furniture Prepaid assets 6,750 2,660 Long-term notes payable 14,700 Accounts payable 8,010 Other accrued current liabilities Stephanie Mulder, Capital 4,370 114,400 Stephanie Mulder, Drawing 22,840 53,550 Juan Scully, Drawing Sales 5,330 X 534,410 Sales returns and allowances 6,480 8,260 Business interest expense Partners' salaries 370,810 560 Deductions (see instructions for limitations) Gross profit. Subtract line 2 from line 1c. Ordinary income (loss) from other partnerships, estates, and trusts (attach statement) Net farm profit (loss) (attach Schedule F (Form 1040)) Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) Other income (loss) (attach statement) Total income (loss). Combine lines 3 through 7 Salaries and and wages (other than to partners) (less employment credits) Guaranteed payments to partners Repairs and maintenance 8.260 c Balance 1c 525.880 2 3 5 6 X 134,300 26,770 Rent expense 13,020 Supplies expense 7,720 Depreciation expense 6,750 Property taxes on business property 570 Payroll taxes 7,030 Delivery expense 4,430 Tax and Payment Bad debt expense 1,370 8 У 26.770 10 134.300 10 10 ન 11 11 12 12 Bad debts 12 12 13.020 13 Rent 13 14 Taxes and licenses 15 15 Interest (see instructions) 14 15 16a Depreciation (if required, attach Form 4562). bless 16a 17 Less depreciation reported on Form 1125-A and elsewhere on return Depletion (Do not deduct oil and gas depletion.) 16b 16c 17 18 Retirement plans, etc. 18 10 19 19 Employee benefit programs 19 20 Energy efficient commercial buildings deduction (attach Form 7205). 20 20 21 Other deductions (attach statement) 21 22 23 23 Total deductions. Add the amounts shown in the far right column for lines 9 through 21 Ordinary business income (loss). Subtract line 22 from line 8 22 02 23 24 25 26 BBA AAR imputed underpayment (see instructions) Interest due under the look-back method-completed long-term contracts (attach Form 8697) Interest due under the look-back method-income forecast method (attach Form 8866) BRA AAR imputed und 24 25 26 Other 27 Other taxes (see instructions) 27 28 Total balance due. Add lines 24 through 27 28 29 Elective payment election amount from Form 3800 29 30 Payment (see instructions) 30 31 32 Amount owed. If the sum of line 29 and line 30 is smaller than line 28, enter amount owed Overpayment. If the sum of line 29 and line 30 is larger than 31 28, enter overpayment 32 Store expenses 5,590 Advertising expense 5,970 Sign Taxable interest income 440 Here Charitable contributions Total 1,160 744,890 744,890 Signature of partner or limited liability company member Print/Type preparer's name Preparer's signature Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than partner or limited liability company member) is based on all information of which preparer has any knowledge. Paid Preparer Use Only Firm's name Firm's address May the IRS discuss this return with the preparer shown below? See instructions. Yes No PTIN Check if self-employed Firm's EIN Phone no. Date Date On January 3, 2023, Stephanie Mulder (SSN 299-84-1945) and Juan Scully formed M&S general partnership (EIN 31-1204102). Mulder and Scully operate a business that sells various types of merchandise (business code 452300) at 1997 Twilight Street, Fairbanks, Alaska 99706. To form the partnership, each partner contributed an amount equal to their capital accounts on the trial balance. The agreement provides that Stephanie will participate in the partnership on a full-time basis and Juan on a part-time basis. The agreement further provides that Stephanie and Juan will receive guaranteed annual payments of $107,440 and $26,860, respectively. The remaining profits go 75% to Stephanie and 25% to Juan. Stephanie is the designated Partnership Representative. Her address is 1991 Anderson Way, Fairbanks, AK 99706. The accountant prepared the trial balance after all necessary adjustments with two exceptions. First, total inventory purchases during the year are shown on the trial balance. A physical inventory taken at the end of the year shows $60,260 of inventory. Second, the partners' capital accounts reflect the contributions the partners made in the first year and are not adjusted. The partners" "Drawings" accounts represent distributions above their respective guaranteed payments. The interest income is on an investment account. The partnership uses the accrual method of accounting. Worthless accounts were written off directly to bad debt expense during the year. The furniture was purchased on January 4, 2023. The partnership calculates depreciation using MACRS. The furniture was the only personal property purchased during 2023. The partnership does not elect Section 179 or bonus depreciation. Book depreciation is reported on the trial balance and is based on a different method than MACRS. On October 3, 2023, the partnership sold 50 shares of common stock in ZMT Corporation for a gain as stated on the trial balance. It purchased the stock for $2,700 on March 29, 2023. Juan Scully, Capital Gain on sale of stock Purchases Office and store salaries Trial Balance + eady Accessibility: Investigate For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11390Z Form 1065 (2023)

B C M&S Partnership 1a Gross receipts Gross receipts or sales 534.410 b Less returns and allowances Cost of goods sold (attach Form 1125-A) Account Trial Balance December 31, 2023 Debit Credit Cash 23,140 Income Accounts and notes receivable 29,480 Furniture 68,910 8 Accumulated depreciation-furniture Prepaid assets 6,750 2,660 Long-term notes payable 14,700 Accounts payable 8,010 Other accrued current liabilities Stephanie Mulder, Capital 4,370 114,400 Stephanie Mulder, Drawing 22,840 53,550 Juan Scully, Drawing Sales 5,330 X 534,410 Sales returns and allowances 6,480 8,260 Business interest expense Partners' salaries 370,810 560 Deductions (see instructions for limitations) Gross profit. Subtract line 2 from line 1c. Ordinary income (loss) from other partnerships, estates, and trusts (attach statement) Net farm profit (loss) (attach Schedule F (Form 1040)) Net gain (loss) from Form 4797, Part II, line 17 (attach Form 4797) Other income (loss) (attach statement) Total income (loss). Combine lines 3 through 7 Salaries and and wages (other than to partners) (less employment credits) Guaranteed payments to partners Repairs and maintenance 8.260 c Balance 1c 525.880 2 3 5 6 X 134,300 26,770 Rent expense 13,020 Supplies expense 7,720 Depreciation expense 6,750 Property taxes on business property 570 Payroll taxes 7,030 Delivery expense 4,430 Tax and Payment Bad debt expense 1,370 8 У 26.770 10 134.300 10 10 ન 11 11 12 12 Bad debts 12 12 13.020 13 Rent 13 14 Taxes and licenses 15 15 Interest (see instructions) 14 15 16a Depreciation (if required, attach Form 4562). bless 16a 17 Less depreciation reported on Form 1125-A and elsewhere on return Depletion (Do not deduct oil and gas depletion.) 16b 16c 17 18 Retirement plans, etc. 18 10 19 19 Employee benefit programs 19 20 Energy efficient commercial buildings deduction (attach Form 7205). 20 20 21 Other deductions (attach statement) 21 22 23 23 Total deductions. Add the amounts shown in the far right column for lines 9 through 21 Ordinary business income (loss). Subtract line 22 from line 8 22 02 23 24 25 26 BBA AAR imputed underpayment (see instructions) Interest due under the look-back method-completed long-term contracts (attach Form 8697) Interest due under the look-back method-income forecast method (attach Form 8866) BRA AAR imputed und 24 25 26 Other 27 Other taxes (see instructions) 27 28 Total balance due. Add lines 24 through 27 28 29 Elective payment election amount from Form 3800 29 30 Payment (see instructions) 30 31 32 Amount owed. If the sum of line 29 and line 30 is smaller than line 28, enter amount owed Overpayment. If the sum of line 29 and line 30 is larger than 31 28, enter overpayment 32 Store expenses 5,590 Advertising expense 5,970 Sign Taxable interest income 440 Here Charitable contributions Total 1,160 744,890 744,890 Signature of partner or limited liability company member Print/Type preparer's name Preparer's signature Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than partner or limited liability company member) is based on all information of which preparer has any knowledge. Paid Preparer Use Only Firm's name Firm's address May the IRS discuss this return with the preparer shown below? See instructions. Yes No PTIN Check if self-employed Firm's EIN Phone no. Date Date On January 3, 2023, Stephanie Mulder (SSN 299-84-1945) and Juan Scully formed M&S general partnership (EIN 31-1204102). Mulder and Scully operate a business that sells various types of merchandise (business code 452300) at 1997 Twilight Street, Fairbanks, Alaska 99706. To form the partnership, each partner contributed an amount equal to their capital accounts on the trial balance. The agreement provides that Stephanie will participate in the partnership on a full-time basis and Juan on a part-time basis. The agreement further provides that Stephanie and Juan will receive guaranteed annual payments of $107,440 and $26,860, respectively. The remaining profits go 75% to Stephanie and 25% to Juan. Stephanie is the designated Partnership Representative. Her address is 1991 Anderson Way, Fairbanks, AK 99706. The accountant prepared the trial balance after all necessary adjustments with two exceptions. First, total inventory purchases during the year are shown on the trial balance. A physical inventory taken at the end of the year shows $60,260 of inventory. Second, the partners' capital accounts reflect the contributions the partners made in the first year and are not adjusted. The partners" "Drawings" accounts represent distributions above their respective guaranteed payments. The interest income is on an investment account. The partnership uses the accrual method of accounting. Worthless accounts were written off directly to bad debt expense during the year. The furniture was purchased on January 4, 2023. The partnership calculates depreciation using MACRS. The furniture was the only personal property purchased during 2023. The partnership does not elect Section 179 or bonus depreciation. Book depreciation is reported on the trial balance and is based on a different method than MACRS. On October 3, 2023, the partnership sold 50 shares of common stock in ZMT Corporation for a gain as stated on the trial balance. It purchased the stock for $2,700 on March 29, 2023. Juan Scully, Capital Gain on sale of stock Purchases Office and store salaries Trial Balance + eady Accessibility: Investigate For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11390Z Form 1065 (2023)

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...

See similar textbooks