Binoculars Experts LLC, a partnership which operates as Rental Agents as the principal activity and principal services are Agent Services but also sold binoculars. The partnership uses the calendar year and was formed on May 14, 2015 by James Jackson, Michel Walker, and Mark Randel to service the Dallas area. The LLC’s business code is 922550 and the Federal ID number is 72-5413218 and located at Branch Avenue, Dallas. Texas 70804. The business had a name change, uses the cash basis of accounting, and will prepare 3 K-1s for 2020 based on the partnership. Profits and losses will be shared equally. Information taken from the LLC’s income statement and balance sheet for 2020: Total Assets $ 4,550,000 Sales receipt 2,750,000 Fees and commissions collected 150,000 Returns and allowances 10% of total receipts Cost of Goods that were sold 140,000 Net gain from Form 4797 110,500 Other Income (no statement needed) 49,100 Ordinary income from other partnership (no statement needed) 99,400 Employee benefit program 223,400 Guaranteed payments to each partner (NOTE) 150,000 Clerical Salaries 327,250 Business Licenses 24,200 Repairs 133,550 Sales Salaries 62,750 Payroll taxes 43,800 Rental Expense 110,400 Bad Debt 123,300 Maintenance Expense 166,450 Interest expense for credit 77,350 Pension retirement expense 86,650 Other Deductions (No attachments needed) 201,500 Depreciation from Form 4562 (form not needed) 119,400 Instructions: Complete Binoculars Experts Page 1 of Form 1065 for 2020 and upload to the Project 2 dropbox.
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
PROJECT 2
Binoculars Experts LLC, a
Information taken from the LLC’s income statement and
Total Assets $ 4,550,000
Sales receipt 2,750,000
Fees and commissions collected 150,000
Returns and allowances 10% of total receipts
Cost of Goods that were sold 140,000
Net gain from Form 4797 110,500
Other Income (no statement needed) 49,100
Ordinary income from other partnership (no statement needed) 99,400
Employee benefit program 223,400
Guaranteed payments to each partner (NOTE) 150,000
Clerical Salaries 327,250
Business Licenses 24,200
Repairs 133,550
Sales Salaries 62,750
Payroll taxes 43,800
Rental Expense 110,400
Maintenance Expense 166,450
Interest expense for credit 77,350
Pension retirement expense 86,650
Other Deductions (No attachments needed) 201,500
Instructions: Complete Binoculars Experts Page 1 of Form 1065 for 2020 and upload to the Project 2 dropbox.
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