For 2020, complete Aspen Ridge limited partnership Form 1065, Schedule K, Schedules M-1 and M-2, Mark Sullivan’s Schedul
Posted: Thu Apr 28, 2022 10:29 am
For 2020, complete Aspen Ridge limited
partnership
Form 1065, Schedule K,
Schedules M-1 and M-2, Mark
Sullivan’s Schedule K-1.
Form 4562 for depreciation and Schedule
D for capital gains.
The Aspen Ridge limited partnership was formed on April 1, 2010,
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, fishing, skiing, and other outdoor gear
to the general public. Mark has a 33.33 percent profits, loss, and
capital interest and the limited partners hold the remaining 66.66
percent of the profits, loss, and capital interests. Their profits,
loss, and capital interests have remained unchanged since the
partnership was formed. Mark is actively involved in managing the
business while the limited partners are only investors, and Mark
receives an annual guaranteed distribution of $35,000 for his
services managing the business.
Aspen Ridge Income Statement
For year ending December 31, 2020
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
Expenses:
Employee wages
$ 95,400
Interest on accounts payable
2,700
Payroll and property taxes
10,800
Supplies
4,300
Rent on retail building
18,500
Depreciation on furniture and fixtures
4,550
Advertising
8,300
Guaranteed payments to Mark Sullivan
35,000
Utilities
6,400
Accounting and legal services
4,400
Business meals
2,240
Cash charitable contribution to the Sierra Club
3,300
Miscellaneous expenses
5,750
Total expenses
(201,640)
Net income for books
$ 253,160
partnership
Form 1065, Schedule K,
Schedules M-1 and M-2, Mark
Sullivan’s Schedule K-1.
Form 4562 for depreciation and Schedule
D for capital gains.
The Aspen Ridge limited partnership was formed on April 1, 2010,
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, fishing, skiing, and other outdoor gear
to the general public. Mark has a 33.33 percent profits, loss, and
capital interest and the limited partners hold the remaining 66.66
percent of the profits, loss, and capital interests. Their profits,
loss, and capital interests have remained unchanged since the
partnership was formed. Mark is actively involved in managing the
business while the limited partners are only investors, and Mark
receives an annual guaranteed distribution of $35,000 for his
services managing the business.
Aspen Ridge Income Statement
For year ending December 31, 2020
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
Expenses:
Employee wages
$ 95,400
Interest on accounts payable
2,700
Payroll and property taxes
10,800
Supplies
4,300
Rent on retail building
18,500
Depreciation on furniture and fixtures
4,550
Advertising
8,300
Guaranteed payments to Mark Sullivan
35,000
Utilities
6,400
Accounting and legal services
4,400
Business meals
2,240
Cash charitable contribution to the Sierra Club
3,300
Miscellaneous expenses
5,750
Total expenses
(201,640)
Net income for books
$ 253,160