A Summary Balance Sheet for the Akerly, Baskin, and Crow

question 21

Essay

A summary balance sheet for the Akerly, Baskin, and Crow partnership on December 31, 2014 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, 2015. The partnership financials on January 1, 2015 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.

---

Definitions:

Quarantine Speech

A speech given by President Franklin D. Roosevelt in 1937 advocating for the quarantine of aggressive nations as a means to prevent war.

Neutrality Acts

A series of laws passed in the 1930s by the United States Congress aimed at preventing the nation from becoming involved in foreign conflicts, particularly in the lead-up to World War II.

Japanese Aggression

The militaristic and expansionist policies pursued by Japan in the late 19th and early 20th centuries, leading to its involvement in conflicts and the occupation of neighboring countries.

Diplomatic Leader

A person who demonstrates skill in managing negotiations and relationships between nations with tact, sensitivity, and acumen.