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 Accounts Receivable Equipment Accumulated depreciation Equipment Accounts Payable Short-Term Note Payable 462,000 11,000 320,000 62,000 72,000 80,000 Long-Term Note Payable 240,000 Capital - Baxter Capital Mandy Withdrawals, Baxter 157,000 172,000 60,000 Withdrawals, Mandy 80,000 Consulting Revenue 375,000 Selling, General, & Administrative Expenses TOTAL 225,000 1,158,000 1,158,000 Additional Information: 1. The short-term notes payable is a 90-day 6% note that was issued on November 16, 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 $300,000. An Installment of $60,000 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: 1. Annual salaries allowances of $40,000 and $60,000 to Baxter and Mandy respectively. 2. 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 3. Any remaining balance shared in a 1:3 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 Accounts Receivable Equipment Accumulated depreciation Equipment Accounts Payable Short-Term Note Payable 462,000 11,000 320,000 62,000 72,000 80,000 Long-Term Note Payable 240,000 Capital - Baxter Capital Mandy Withdrawals, Baxter 157,000 172,000 60,000 Withdrawals, Mandy 80,000 Consulting Revenue 375,000 Selling, General, & Administrative Expenses TOTAL 225,000 1,158,000 1,158,000 Additional Information: 1. The short-term notes payable is a 90-day 6% note that was issued on November 16, 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 $300,000. An Installment of $60,000 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: 1. Annual salaries allowances of $40,000 and $60,000 to Baxter and Mandy respectively. 2. 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 3. Any remaining balance shared in a 1:3 ratio to Baxter and Mandy, respectively. REQUIRED: Prepare a classified balance sheet for the partnership as at Dec 31, 2023
Chapter2: Income Tax Concepts
Section: Chapter Questions
Problem 80DC
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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
Accounts Receivable
Equipment
Accumulated depreciation Equipment
Accounts Payable
Short-Term Note Payable
462,000
11,000
320,000
62,000
72,000
80,000
Long-Term Note Payable
240,000
Capital - Baxter
Capital Mandy
Withdrawals, Baxter
157,000
172,000
60,000
Withdrawals, Mandy
80,000
Consulting Revenue
375,000
Selling, General, & Administrative Expenses
TOTAL
225,000
1,158,000 1,158,000
Additional Information:
1. The short-term notes payable is a 90-day 6% note that was issued on November 16, 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 $300,000. An Installment of
$60,000 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:
1. Annual salaries allowances of $40,000 and $60,000 to Baxter and Mandy respectively.
2. 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
3. Any remaining balance shared in a 1:3 ratio to Baxter and Mandy, respectively.
REQUIRED: Prepare a classified balance sheet for the partnership as at Dec 31, 2023
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