Learning Outcomes for this Module Reminder:
Assess the nature and regulation of partnerships.
Analyze the differences among different types of partnerships.
Formulate calculations and journal entries for formation, operation, and allocations of partnership profits and losses including changes in partnership ownership structures.
Explain terms associated with partnership liquidations.
Demonstrate calculations related to lump-sum and installment partnership liquidations.
In addition to the assignment in Connect, please answer the following questions and submit your answers in a Word document:
W ith regards to your assignment performed in Connect, and what you read and learned about in this module, answer the following questions.
You should refer to the FASB Accounting Standards Codification (FASB ASC), specifically, when answering some of the questions below:
Bill, George, and Anne are partners in the BGA Partnership. A difference in opinion exists among the partners as to how to account for Newt’s admission as a new partner. The three present owners have the following positions:
Bill wants to use the bonus method.
George believes the goodwill method is the best.
Anne wants to revalue the existing tangible assets.
Prepare a memo discussing the three different methods of accounting for the admission of a new partner, including considerations of the effects on the partnership capital in the year Newt is admitted and on the capital balances in future years.
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