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.

Question

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.

Quizplus · Accepted Answer

The Answer of 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.

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