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Penner and Torres decide to merge their proprietorships into a partnership called Crane Company. The balance sheet of Torres Co. shows: Accounts receivable Less: Allowance for doubtful accounts Equipment Less: Accumulated depreciation-equip. Accounts Receivable Less : $17,000 Equipment 1,190 The partners agree that the net realizable value of the receivables is $14,280 and that the fair value of the equipment is $20,350. Indicate how the accounts should appear in the opening balance sheet of the partnership. Allowance for Doubtful Accounts 37,000 12,950 $15,810 24,050 Crane Company. Balance Sheet (Partial) $ 17,000 12,950 $ 24,050 20,350

Penner and Torres decide to merge their proprietorships into a partnership called Crane Company. The balance sheet of Torres Co. shows: Accounts receivable Less: Allowance for doubtful accounts Equipment Less: Accumulated depreciation-equip. Accounts Receivable Less : $17,000 Equipment 1,190 The partners agree that the net realizable value of the receivables is $14,280 and that the fair value of the equipment is $20,350. Indicate how the accounts should appear in the opening balance sheet of the partnership. Allowance for Doubtful Accounts 37,000 12,950 $15,810 24,050 Crane Company. Balance Sheet (Partial) $ 17,000 12,950 $ 24,050 20,350

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Penner and Torres decide to merge their proprietorships into a partnership called Crane Company. The balance sheet of Torres Co. shows: Accounts receivable Less: Allowance for doubtful accounts Equipment Less: Accumulated depreciation-equip. Accounts Receivable $17,000 Less : Allowance for Doubtful Accounts Equipment 1,190 37,000 12,950 The partners agree that the net realizable value of the receivables is $14,280 and that the fair value of the equipment is $20,350. Indicate how the accounts should appear in the opening balance sheet of the partnership. $15,810 24,050 Crane Company. Balance Sheet (Partial) 17,000 12,950 $ 24,050 20,350
Transcribed Image Text:Penner and Torres decide to merge their proprietorships into a partnership called Crane Company. The balance sheet of Torres Co. shows: Accounts receivable Less: Allowance for doubtful accounts Equipment Less: Accumulated depreciation-equip. Accounts Receivable $17,000 Less : Allowance for Doubtful Accounts Equipment 1,190 37,000 12,950 The partners agree that the net realizable value of the receivables is $14,280 and that the fair value of the equipment is $20,350. Indicate how the accounts should appear in the opening balance sheet of the partnership. $15,810 24,050 Crane Company. Balance Sheet (Partial) 17,000 12,950 $ 24,050 20,350
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