Partnership liabilities consist of accounts payable

Assignment Help Auditing
Reference no: EM13169355

Required:

Using the information provided below, complete Aspen Ridge limited partnership s page 1 of Form 1065; complete Schedule K on page 4 of

Form 1065; complete lines 1 and 2 of the Analysis of Net Income (Loss) at the top of page 5 of Form 1065; and complete Schedules M-1 and M-2 at the bottom of page 5 of Form 1065. Finally, complete Mark Sullivan s Schedule K-1.

Form 4562 for depreciation is not required. Include any tax depreciation or Section 179 expense on the appropriate line of page 1 of Form 1065 or Schedule K.

If any information is missing, use reasonable assumptions to fill in any gaps.

Facts:

The Aspen Ridge limited partnership was formed on April 1, 2009, by Mark Sullivan, its general partner, and two other limited partners when they each contributed an equal amount of cash to start the new enterprise. Aspen Ridge is an outdoor equipment retailer selling camping, fi shing, skiing, and other outdoor gear to the general public. Mark has a 33.33% profi ts and capital interest and the limited partners hold the remaining 66.66% of the profi ts and capital interests. Their profi ts and capital interests have remained unchanged since the partnership was formed. Mark is actively involved in managing the business while the limited partners are simply investors.

Aspen Ridge is located at 1065 North 365 South, Ogden, UT, 84401. The employer identification number for Aspen Ridge is 85-8976654.

Aspen Ridge uses the accrual method of accounting and has a calendar year end.

Mark s address is 543 Wander Lane, Holliday, UT 84503.

The following is Aspen Ridge s 2011 income statement for books:
Aspen Ridge Income Statement
For year ending December 31, 2011
Sales 965,500
Sales Returns and Allowances (9,700)
Cost of Goods Sold (538,200)
Gross Profit from Operations 417,600
Other Income:
Interest from money market account 3,200
Gain from sale of photograph 34,000
Gross Income 454,800
C-20 Appendix C
Notes:

1. Aspen Ridge has total assets of $1,725,800 and total liabilities of $540,300 at the beginning of the year and total assets of $2,065,300 and total liabilities of $806,640 at the end of the year.

2. Partnership liabilities consist of accounts payable, and Mark, as general partner, is legally responsible for paying these liabilities if the partnership does not.

3. Two years ago, Aspen Ridge purchased an original Ansel Adams outdoor landscape photograph with the intent to display it permanently in the retail store. This year, however, the photograph was sold to a local ski lodge where it is now hangs on the wall. The $34,000 recognized gain from the sale is reflected in the income statement above.

4. For tax purposes, Aspen Ridge has consistently elected under Section 179 to expense any furniture or fixtures purchased every year since it was formed. As a result, it does not have a tax basis in any of its depreciable assets. This year, Aspen Ridge expensed $17,300 of signs and display cases for tax purposes.

5. On November 20th, Aspen Ridge distributed $180,000 ($60,000 per partner) to the partners.

6. Miscellaneous expenses include a $900 fine for violating a local signage ordinance.

7. Aspen Ridge maintains its books using generally accepted accounting principles.

Reference no: EM13169355

Identify the type of audit opinion issued by the auditor

ACC 302 - Identify at least three inherent risks that you would have considered for the company in the audit planning phase and justify your answer - Identify the type of au

Principles governing international accounting in usa

International accounting is impacted by a wide range of factors, including accounting diversity, global accounting standards, multinational companies, and the global economy

Please advise james

TLAW 101 - BUSINESS LAW - ASSIGNMENT QUESTIONS - Advise Richard fully whether he has any claim against Cube - Referring to relevant case law and giving reasons for your propos

Give appropriate recommendation for csc to correct weakness

For each finding above, indicate internal control principle that CSC violated. For each finding above, provide an appropriate recommendation for CSC to correct the weakness.

Audit of harness ltd

Comment on the implications of the above on the audit of Harness Ltd for the year end June 20X8 - Briefly outline the reasons why social and environmental issues are of intere

Analyzing interface issues-defining change requirements

You have been asked to assess the interface for company XYZ's online job bank and resume submission function. Only pieces of data available are: (1) HR is overwhelmed with t

Create the entry to record the year-end adjusting entry

Create the entry to record the year-end adjusting entry for predictable returns and evaluate the amount of the year-end allowance for sales returns after adjusting entry is r

Product cost and respective current selling price

Calculate full unit cost for products X and Y under the traditional costing system and calculate full unit cost for products X and Y under the new activity-based costing (ABC)

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd