1065 Dallas Partners Case Study Facts: Using Trial Balance Bridge

Dallas Partners Case Study Facts: Introduction * Using 1065 after the Bridge Import

If you have the tax application installed (1120 or 1065), from within the return, select Access > Trial Balance.

Reviewing the Bridge Defaults

From within the tax return, select Access > Trial Balance. Once you are in Trial Balance, select Options > Merge Defaults. Verify that the option Suppress Merge of Accounts without Balances is selected.

Under the separate tabs in Merge Defaults, the following boxes should be checked:

Tab	Box to Check
Page 1	Merge Page 1: Income and Deductions
Sch. A	Merge Schedule A: Cost of Goods Sold
Sch. K	Merge Schedule K: Partners’ Share of Income, Credits, Deductions
Sch. L	Merge Schedule L: Balance Sheet
8825	Merge Form 8825: Rental Real Estate Income and Expenses
Sch. M-1	Merge Schedule M-1: Reconciliation of Income (Loss)
Sch. M-2	Merge Schedule M-2: Analysis of Partner Capital Accounts

The files needed for importing data to the bridge are DALLASTB.DIF and DALTCC.DIF, located in the C:\Program Files(x86)\RIA\RS2019 directory.

Importing the Trial Balance and Tax Combination Code Descriptions into Trial Balance Bridge

1. From within Trial Balance, select File > Import.
2. Select User Defined and click the New button.
3. Select the following:
   • Source File Import Type: Choose Trial Balance.
   • Source File Format: Choose DIF.
   • Template Name: Enter a name that is meaningful to you. No spaces are permitted in the template name field.
   • Source File Information: Click Browse and select the file to import (DallasTB.DIF).
4. Click Open, and then click OK.
5. Verify that the descriptions below are assigned to the correct columns.

   Description	Column
   Account Number	Column A
   Account Description	Column B
   Prior Year Balance	Column F
   Current Year Balance	Column G
   Tax Return Code	Column C
   Tax Combination Code	Column D

6. Enter 2 as the first line of import.
7. Click Import Now. Click Yes.
8. Click Import. Click OK.
9. Click No when asked Do you want to add this file and format to the Auto Import list?.
10. Click Done.

To import Tax Combination Codes (TCC), repeat the above steps except for the following:

1. Choose the TCC Descriptions as the source file import type.
2. Verify that the descriptions below are assigned to the correct columns. This template only has three User Defined columns (A, B, C).

   Description	Column
   Tax Return Code	Column A
   TCC Number	Column B
   TCC Description	Column C

3. A window appears that says 400 has an invalid TRC<55-555>, making it blank. This message refers to the TRC code for other dividend income. Close this window.
4. To correct this problem, in the Trial Balance Grid, scroll to Dividend Income (Acct Num 400), and enter the TRC 31-108 in the TRC column.
5. In the Trial Balance Grid, scroll to the following accounts and enter the TCC in the TCC column:

   Account	TCC
   2859	001
   2865	002
   2660	001
   2780	002

6. Select Options > Return Defaults.
7. Enter the number for the equity account that includes either current or accumulated income (loss). This account indicates where you want to close current period income (loss). The default is the account that has a TRC of 22-500, Partner Capital. It may be changed to another account with the same TRC.
8. Select Options > Calculate Now.
9. Select View > Tax Summary.
10. If Tax Summary is in balance, click the X to close. You are now ready to enter the journal entries (book adjustments, tax reclassifications, Schedule M-1, or Schedule M-2 adjustments) into the bridge. Page 1 and Schedule M-3 are out of balance. Ignore this condition in this case study.

Entering Journal Entries

1. From within the Bridge, select Ledger > Journal Entries. Journal entries are needed for Tax Reclassification and Schedule M-1 adjustments.
2. Select Tax Reclassification as the type of entry you wish to enter, and click New. Click Done after each journal entry.
3. Enter the Tax Reclassification entries in Table A below.
4. Next, select Schedule M-1 Adjustments as the type of entry you wish to enter, and then click New.
5. Enter the journal entries in Table B below. Click Done after each journal entry.

Table A

Account	Description	Debit	Credit
TAX41-230	Guaranteed Payments	172,000
1120	Salaries		172,000
TAX48-450	Advertising - RE Rental Exp.	250,000
TAX48-474	Taxes - RE Rental Exp.	200,000
TAX48-477	Utilities - RE Rental Exp.	150,000
TAX48-480	Salaries - RE Rental Exp.	75,000
TAX48-486	Depreciation - RE Rental Exp.	800,000
1680	Advertising		250,000
1204	Taxes - Real Property		200,000
902	Utilities		150,000
1120	Salaries		75,000
1500	Depreciation		800,000
TAX44-630	Sch Line 11 Other Simplified Employee Benefits Plan Exp.	364,125
1720	Benefits Plan Expense		364,125

Table B

Account	Description	Debit	Credit
Permanent Differences
TAX60-216	Travel & entertainment	73,000
1924	Meals & entertainment		73,000
TAX60-216	Travel & entertainment	20,000
1908	Outside services		20,000
Temporary Differences
TAX60-240	Other book expenses	150,000
1160	Bad debts		150,000
1760	Emp. benefit programs	1,800,000
TAX60-540	Other Tax Ded. Not Recorded		1,800,000
TAX60-240	Other book expenses	1,000,000
1120	Salaries		1,000,000
1500	Depreciation	1,625,566
TAX60-510	Depreciation		1,625,566

Bridge Review and Merge

1. After all journal entries have been entered, verify that the Bridge is in balance by selecting View > Tax Summary.
2. If the Bridge is in balance, merge the bridge data into the Tax Application by selecting Options > Merge Now.
3. You may print and review the Bridge workpapers by selecting File > Print or File > Print Preview.

Importing Partner Information Using the Partner Template

The files used to import Partner information into this Case Study return are the DPARTNERPIO.DIF and DPARTNERSAO.DIF files, located in the C:\Program Files(x86)\RIA\RS2019 directory.

Importing the Partner Bridge

1. Select File > Import > Partner Information.
2. The Import DIF box appears. Select Partner Information Only.
3. Click Browse and select the DPARTNERPIO.dif file, located in the C:\Program Files(x86)\RIA\RS2019 directory.
4. Click Open.
5. The path and file name should appear in the Import DIF File box.
6. Click Import.
7. When the import process is complete, click OK.
8. Click Done.
9. Repeat the process again to import the DPARTNERSAO.DIF file. Use the same steps, except in Steps 2 and 3.
   
   In Step 2, select the Special Allocations Only button.
   
   In Step 3, select the DPARTNERSAO.DIF file to import.
10. Continue the remaining steps in order.

 

 

 

Case Study Facts/dallas_using_bridge.htm/TY2019

Last Modified: 03/19/2020

Last System Build: 06/17/2021

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