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Penner and Torres decide to merge their proprietorships into a partnership called Sunland Company. The balance sheet of Torres Co shows: Accounts receivable Less: Allowance for doubtful accounts Equipment Less: Accumulated depreciation-equip. $22,000 1,540 34,000 11,900 $20,460 22,100 The partners agree that the net realizable value of the receivables is $18,480 and that the fair value of the equipment is $18,700. Indicate how the accounts should appear in the opening balance sheet of the partnership. Sunland Company. Balance Sheet (Partial) $ $ (A

Penner and Torres decide to merge their proprietorships into a partnership called Sunland Company. The balance sheet of Torres Co shows: Accounts receivable Less: Allowance for doubtful accounts Equipment Less: Accumulated depreciation-equip. $22,000 1,540 34,000 11,900 $20,460 22,100 The partners agree that the net realizable value of the receivables is $18,480 and that the fair value of the equipment is $18,700. Indicate how the accounts should appear in the opening balance sheet of the partnership. Sunland Company. Balance Sheet (Partial) $ $ (A

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Penner and Torres decide to merge their proprietorships into a partnership called Sunland Company. The balance sheet of Torres Co. shows: Accounts receivable Less: Allowance for doubtful accounts Equipment Less: Accumulated depreciation-equip. $22,000 : 1,540 34,000 11,900 $20,460 22,100 The partners agree that the net realizable value of the receivables is $18,480 and that the fair value of the equipment is $18,700. Indicate how the accounts should appear in the opening balance sheet of the partnership. Sunland Company. Balance Sheet (Partial) $ LA
Transcribed Image Text:Penner and Torres decide to merge their proprietorships into a partnership called Sunland Company. The balance sheet of Torres Co. shows: Accounts receivable Less: Allowance for doubtful accounts Equipment Less: Accumulated depreciation-equip. $22,000 : 1,540 34,000 11,900 $20,460 22,100 The partners agree that the net realizable value of the receivables is $18,480 and that the fair value of the equipment is $18,700. Indicate how the accounts should appear in the opening balance sheet of the partnership. Sunland Company. Balance Sheet (Partial) $ LA
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