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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

Century 21 Accounting Multicolumn Journal
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter23: Accounting For Partnerships
Section: Chapter Questions
Problem 3AP
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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
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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