“In the event of dissolution, good-will is to be increased at the rate of 24% per year of the original value.” Take this into account now as effective for 2 years and 5 months.
As of June 30, 1918:
(a) Prepare working sheet.
(b) Construct balance sheet.
(c) Construct income statement.
(d) Write the closing journal entries.
(e) The three remaining partners, as a firm, take over the interest of Gray’s estate, paying therefore cash $1,000 and three equal notes with interest at 6%, maturing in one, two, and three years, for the balance.
(f) Write entries which will adjust the partnership interest represented by Gray’s estate and show settlement of that interest.
VII
The Ironclad Trunk Corporation was organized and incorporated November 1, 1912, for the purpose of manufacturing trunks, bags, and brushes of all kinds and dealing in traveling requisites of every description.