Two sole proprietors, L and M, agreed to form a partnership on January 1, 2013. The trial balance for each proprietorship is shown below as of January 1, 2013. Click the link at the bottom of the page to access aspreadsheet containing information from both proprietors.
The LM partnership will take over the assets and assume the liabilities of the proprietors as of January 1, 2013.
Discuss the following:
- The steps required to form the partnership (by Tuesday)
- Prepare and post the financials for LM Partnership and discuss the differences that you have with your colleagues (by Wednesday)
- After Wednesday, consider the following: Assume that M agreed to recognize the goodwill generated by L’s business. Accordingly, M agreed to recognize an amount for L’s goodwill such that L’s capital equaled M’s capital on January 1, 2013. Given this alternative, how does the balance sheet prepared for #1 change?
Is this question part of your Assignment?
We can help
Our aim is to help you get A+ grades on your Coursework.
We handle assignments in a multiplicity of subject areas including Admission Essays, General Essays, Case Studies, Coursework, Dissertations, Editing, Research Papers, and Research proposalsHeader Button Label: Get Started NowGet Started Header Button Label: View writing samplesView writing samples