1) Characteristics and subcategories of a partnership. 2) Understand the characteristics of the drawing and capital accounts and how they work. 3) Know how to book journal entries to allocate partners share of income and close out the drawing account (remember the income summary account). 4) Understand the characteristics of contributed property and how they are accounted for in the newly formed partnership. 5) Be able to complete a schedule to allocate income including when there are salaries, bonuses, and interest. 6) Understand the proprietary and entity theory (look at it in both chapters). 7) Know the characteristics of the goodwill method and the bonus method and the differences between them. 8) How are differences between book value and fair value allocated to partners? 9) Understand the guidelines of a partnership liquidation. 10) Understand the lump sum and the installment methods of partnership liquidations. 11) Understand how to calculate new partnership capital balances under the goodwill and bonus method when a new partner is admitted. 12) Understand how to calculate capital balances remaining cash available to partners in a liquidation (once all assets are sold and liabilities are paid). This would include how partners' capital deficits are covered.