| After studying this chapter, you should be able to: | |
| LO1 | Discuss the advantages and disadvantages of the partnership versus the corporate form of business. |
| LO2 | Describe the purpose of the articles of partnership and list specific items that should be included in this agreement. |
| LO3 | Prepare the journal entry to record the initial capital investment made by a partner. |
| LO4 | Use both the bonus method and the goodwill method to record a partner's capital investment. |
| LO5 | Understand the impact that the allocation of partnership income has on the partners' individual capital balances. |
| LO6 | Allocate income to partners when interest and/or salary factors are included. |
| LO7 | Discuss the meaning of partnership dissolution and understand that a dissolution will often have little or no effect on the operations of the partnership business. |
| LO8 | Prepare journal entries to record the acquisition by a new partner of either all or a portion of a current partner's interest. |
| LO9 | Prepare journal entries to record a new partner's admission by a contribution made directly to the partnership. |
| LO10 | Prepare journal entries to record the withdrawal of a current partner. |