Barry B. Bealor and Nancy L. Bealor, et al. - Page 134

                                       - 82 -                                         
                                W & A Payroll Service                                 
               On July 1, 1986, Fred and Bruce organized and promoted W & A           
          Payroll Service (W & A) as a general partnership.  BBPA prepared            
          a schedule for cash receipts of W & A through March 31, 1988, and           
          a schedule of W & A's cash disbursements through June 30, 1988.             
          BBPA made adjusting journal entries as of January 1, 1987, and              
          January 1, 1988.                                                            
               W & A was in substance similar to the earlier partnerships.            
          There were, however, some notable differences, chiefly the                  
          absence of any checks or notes in the partnership's financial               
          transactions.                                                               
               As with the previous partnerships, W & A used the calendar             
          year as its tax year and the cash method of accounting from its             
          inception until December 31, 1987.  It also had the same address            
          as BBPA.                                                                    
               W & A had a bank account at the First Jersey Bank/South                
          (First Jersey) Bank, which was the payroll account.  Andrew                 
          Bryen, Fred's brother and a partner in W & A, was an authorized             
          signatory on the W & A payroll account at the First Jersey Bank.            
          Andrew has an eighth-grade education.  He owns half of a meat               
          company, of which Fred was the vice president.  With respect to             
          Fred's financial directives, Andrew "trusted anything Fred said,            
          and if he told me--if he sent something over for me to sign, I'd            
          sign it.  I wouldn't even look at it.  I'd just sign it."  Andrew           






Page:  Previous  72  73  74  75  76  77  78  79  80  81  82  83  84  85  86  87  88  89  90  91  Next

Last modified: May 25, 2011