A . Explain the process and methods used to account for partnership formation . How do these methods impact the firm ’ s balance sheet ?
B . Illustrate how the company could split profits and losses .
C . Describe what happens if the partnership doesn ’ t do well and the company has to dissolve it , or one of the partners becomes insolvent .
D . Illustrate the dissolution process by creating a hypothetical cash distribution schedule . Ensure all information is entered accurately
II . Corporation : The company is also considering structuring its business as a corporation , but is aware that there are a lot of complex issues to consider when accounting for an incorporated entity . The company is concerned about the following key areas :
A . Differentiate between various forms of bankruptcy and restructuring that the firm should understand .
1 . Summarize the key points of interest if the firm fell on hard times and had to file voluntary bankruptcy . What ethical implications should be considered when debating whether or not to file bankruptcy ?
2 . Identify the key areas of concern if the firm fell on hard times and their creditors forced them into bankruptcy . What defenses are available in this situation ?
3 . Illustrate hypothetical calculations that would be done to help creditors understand how much money they might receive if the company were to liquidate . Ensure all information is entered accurately . Please refer to the illustration ( Exhibit 13.2 ) on page 592 from your textbook to view potential calculations
Guidelines for Submission : Your report must be submitted as a 2- to 3-page Word document with double spacing , 12-point Times New Roman font , one-inch margins , and at least two