Appendix I: Balance sheet of Amero and Bo at December 31, 2020 Amero and Bo Partnership Balance Sheet As at December 31, 2020 Assets

Cash $ 5,000

Accounts receivable 28,000

Inventory 47,000

Prepaid expenses 12,500

Property, plant, and equipment (net) 174,500

Total $267,000

Liabilities and capital Accounts payable and accrued liabilities $ 61,500

Loan payable 109,500 $171,000

Capital Amero 48,000

Capital Bo 48,000

Total $267,000

Appendix II: Excerpts from the new partnership agreement between Amero, Bo, and Cliff Excerpts from the new partnership agreement between Amero, Bo, and Cliff

Cliff contributed $60,000 cash on January 1, 2021, for a one-third interest in the partnership.

Amero, Bo, and Cliff will share all profits and losses of the partnership equally( 0ne -third each )

PREPARE THE JOURNAL ENTRY REGARDING ADIMMISION OF NEW PARTNER USING GOODWILL METHOD.