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.
Definitions:
Merchandise
Goods or products that are bought and sold in the course of business.
Production Plant
A facility where raw materials are transformed into finished goods through various processes and machinery.
Free Internet Service
Internet access provided at no cost to the user, often with certain limitations or supported by advertisements.
Credit Card Number
A unique sequence of numbers assigned to a credit card that identifies the issuer and the cardholder account.
Q2: What is the document prepared by the
Q3: For each of the 12 accounts listed
Q8: On June 1, 2012, Irene places in
Q8: When recording an approved budget into the
Q19: For internal decision-making purposes, Geogh Corporation identifies
Q21: What is the fair value of the
Q28: The following data relate to Elle Corporation's
Q35: Prepare journal entries to record the following
Q36: On consolidated working papers, a subsidiary's net
Q59: Diane purchased a factory building on November