Penner and Torres decide to merge their proprietorships into a partnership called OrioleCompany. The balance sheet of Torres Co. shows:Accounts receivable $22,000Less: Allowance for doubtful accounts 1,540 $20,460Equipment 36,000Less: Accumulated depreciation—equip. 12,600 23,400The partners agree that the net realizable value of the receivables is $18,480 and that the fairvalue of the equipment is $19,800. Indicate how the accounts should appear in the openingbalance sheet of the partnership.Oriole Company.Balance Sheet (Partial
Penner and Torres decide to merge their proprietorships into a partnership called OrioleCompany. The balance sheet of Torres Co. shows:Accounts receivable $22,000Less: Allowance for doubtful accounts 1,540 $20,460Equipment 36,000Less: Accumulated depreciation—equip. 12,600 23,400The partners agree that the net realizable value of the receivables is $18,480 and that the fairvalue of the equipment is $19,800. Indicate how the accounts should appear in the openingbalance sheet of the partnership.Oriole Company.Balance Sheet (Partial
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Penner and Torres decide to merge their proprietorships into a
Company. The
Accounts receivable $22,000
Less: Allowance for doubtful accounts 1,540 $20,460
Equipment 36,000
Less:
The partners agree that the net realizable value of the receivables is $18,480 and that the fair
value of the equipment is $19,800. Indicate how the accounts should appear in the opening
balance sheet of the partnership.
Oriole Company.
Balance Sheet (Partial
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