Commonwealth Income & Growth Fund VI | 2013 | FY | 3


9. Restatement

 

During a review of the Partnership’s accounting records, it was discovered that approximately $85,000 of lease revenue was recognized in the year December 31, 2013 when it should have been recognized in the year ended December 31, 2012. Management concluded that there was an error and evaluated the effect on the Partnership’s financial statements. Management evaluated the materiality of the error from qualitative and quantitative perspectives and concluded that the error was material to the fiscal year ended December 31, 2013. The accompanying financial statements for 2012 have been restated to reflect the corrections. The restatement had no impact on the partners’ capital at December 31, 2013.

 

The impact of the adjustment to correct the error to the specific line items of the financial statements for the year ended December 31, 2012 was as follows:

 

Restated Balance Sheet Amounts

As of December 31, 2012

As Previously Reported

Adjustment

As Revised

Lease income receivable

$

482,788

$

55,734

$

538,522

Accounts receivable, CCC, net

 

 

820,520

 

 

 

21,873

 

 

 

842,393

 

Total assets

9,478,610

77,607

9,556,217

Unearned lease income

 

 

280,591

 

 

 

(7,291

273,300

 

Total liabilities

 

 

968,863

 

 

 

(7,291

)

 

 

961,572

 

Limited partners’ capital

8,508,747

 

84,898

8,593,645

 

Total  partners’ capital

8,509,747

84,898

8,594,645

Total liabilities and partners’ capital

9,478,610

77,607

9,556,217

 

Restated Statement of Operations Amounts

Year Ended December 31, 2012

 

As Previously Reported

Adjustment

As Revised

 

Lease revenue

$

6,371,220

$

84,898

$

6,456,118

 

Net loss

(368,528)

84,898

(283,630)

 

Net loss allocated to Limited Partnership Unit

 

$

(0.22)

 

 

$

0.04

 

 

$

(0.18)

 

 

 

 


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