A Summary Balance Sheet for the Ash,Brown,and Curly Partnership on December

question 33

Essay

A summary balance sheet for the Ash,Brown,and Curly partnership on December 31,2014 is shown below.Partners Ash,Brown,and Curly allocate profit and loss in their respective ratios of 2:1:1.The partnership agreed to pay partner Brown $135,000 for his partnership interest upon his retirement from the partnership on January 1,2015.The partnership financials on January 1,2015 are:
Required:
Prepare the journal entry to reflect Brown's retirement from the partnership:
1.Assuming a bonus to Brown.
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:

Demand Cycles

Fluctuations over time in the demand for goods or services, often influenced by seasonal trends, economic factors, or consumer preferences.

Product Life Cycles

The stages a product goes through from conception and introduction to the market to growth, maturity, and eventual decline.

Focus Forecasting

Forecasting that tries a variety of computer models and selects the best one for a particular application.

Computer Models

Simulations or algorithms created within a computer that represent or predict real-world systems, behaviors, or outcomes.