Mark D. Pridgen and Kay D. Pridgen - Page 9




                                        - 9 -                                         

             Beaufort Leaf's return for 1991 reports sales and purchases              
             in the same amounts; i.e., $2,849,451.31 and $2,713,562.46,              
             respectively.                                                            
                  Neither the journal for 1991 nor anything else in the               
             record explains the nature of the "adjusting entries"                    
             shown in the journal increasing sales in the amount of                   
             $1,320,788.88 and increasing purchases in the amount of                  
             $1,273,359.59.  The adjusting entry to purchases of                      
             $350,000 is labeled "Accts Payable--OK Leaf" without any                 
             other explanation.                                                       
                  We note that Beaufort Leaf's journal for 1991 shows                 
             the following checks issued by the partnership to                        
             "HLRoberts" or "HLR":                                                    
























Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011