Chapter 14, Problem 3E

  $1)$

To determine

Concept introduction

Partnership firm It is a form of a business in which a group of people shares all the profit and losses with each other which are often called partners comes together and runs a partnership firm.

To prepare: The P’scapital balance if F sold their interest $\$125,000$ to either T or an outside party.

  $2)$

To determine

Concept introduction

Partnership firm

It is a type of form of a business in which a group of people shares all the profit and losses with each other which are often called partners comes together and runs partnership firm.

To prepare: The P’s capital balance if freeman sold their interest to the partnership for $\$125,000$ and the bonus method was used to record the transaction.

  $3)$

To determine

Concept introduction

Partnership firm

It is a form of a business in which a group of people shares all the profit and losses with each other which are often called partners comes together and runs a partnership firm.

To prepare: The P’s capital balance if F sold their interest to the partnership for $\$125,000$ and the goodwill methodwhich only recognizes goodwill traceable to F was used to record the transaction.

  $4)$

To determine

Concept introduction

Partnership firm

It is a form of a business in which a group of people shares all the profit and losses with each other which are often called partners comes together and runs a partnership firm.

To prepare: The P’s capital balance if freeman sold their interest to the partnership for $\$125,000$ and the goodwill method, which recognizes goodwill traceable to the entire partnership, was used to record the transaction.

  $5)$

To determine

Concept introduction

Partnership firm

It is a form of a business in which a group of people share all the profit and losses with each other which are often called partners comes together and runs a partnership firm.

To prepare: The preferable method of goodwill that should be used.

  $6)$

To determine

Concept introduction

Partnership firm

It is a form of a business in which a group of people share all the profit and losses with each other which are often called partners comes together and runs a partnership firm.

To prepare: The constructive comments regarding the method by which profits and losses are allocated by the partnership.