Assignment
PROMT
Imagine you have been working at Quality's CPA firm for two years now. Your great work has not gone unnoticed, and the CPA partners would like to help you grow within the firm by getting you more contact with some of the larger clients. To accomplish this goal, the partners have asked you to assemble a report for one of the firm's most influential and growing clients, to help address some key areas of concern for the client. Your goal is to assemble the information necessary to address each of the client's questions, outlined below. You will be required to submit all of your responses in the form of a written report, with accompanying spreadsheets as supporting documentation
Required:
Partnership: The company is considering forming a partnership and wants to be sure it understands the key issues regarding partnership formation, income distribution, and liquidation.
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.
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.
Note that I need an original document (2-3 pages) not another student paper and please provide proper references and citation.
Attachment:- Exhibit-13-2.pdf