ACTIVITY 01: PARTNERSHIPS: FORMATION, OPERATION, AND OWNERSHIP CHANGES 1- Think of a Partnership Business you as a group wish to start, and briefly introduce your business. 2- Prepare a Partnership Agreement 3- Record transaction regarding 'Formation of your Partnership' firm (Specify whether the group has agreed to use Bonus Method or Goodwill Method 4- Allocate Net Income or Net Loss and record journal entries using: i)- A fixed ratio. ii)- A ratio based on capital balances. Using Weighted Average Capital Balance Payment of Salary to Partners Bonus iii)- Interest on capital investment. iv)- Insufficient income to cover allocation 5-Record journal entries relating to 'Changes in the Ownership of the Partnership' i)- Section A: Admission of a New Partner ii)- Section B: Withdrawal of a Partner ACTIVITY 02: PARTNERSHIP LIQUIDATION 6- Record journal entries related to 'Priorities of Partnership and Personal Creditors' 7- Record journal entries related to 'Simple Liquidation' NOTE: 1- All questions must be answered. If a question does not apply to your business combination, you must state that the question does not apply and explain why. 2- Each team member is expected to review the entire report and make suggestions for improving the report. Use spell check and grammar check before turning in your reports. NOTE: 1- All questions must be answered. If a question does not apply to your business combination, you must state that the question does not apply and explain why. 2- Each team member is expected to review the entire report and make suggestions for improving the report. Use spell check and grammar check before turning in your reports