A Summary Balance Sheet for the Akerly,Baskin,and Crow Partnership on December

question 28

Essay

A summary balance sheet for the Akerly,Baskin,and Crow partnership on December 31,2011 is shown below.Partners Akerly,Baskin,and Crow allocate profit and loss in their respective ratios of 3:2:1.The partnership agreed to pay partner Baskin $500,000 for his partnership interest upon his retirement from the partnership on January 1,2012.The partnership financials on January 1,2012 are:
Required:
Prepare the journal entry to reflect Baskin's retirement from the partnership:
1.Assuming a bonus to Baskin.
2.Assuming a revaluation of total partnership capital based on excess payment.
3.Assuming goodwill equal to the excess payment is recorded.

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Definitions:

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