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Prepare a classified balance sheet for the partnership on January 1, 2022. (List Current Assets in order of liquidity.)

Prepare a classified balance sheet for the partnership on January 1, 2022. (List Current Assets in order of liquidity.)

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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Prepare a classified balance sheet for the partnership on January 1, 2022. (List Current Assets in order of liquidity.) BLOSSOM COMPANY Balance Sheet Assets Liabilities and Owners' Equity %24 %24 24 > >
Transcribed Image Text:Prepare a classified balance sheet for the partnership on January 1, 2022. (List Current Assets in order of liquidity.) BLOSSOM COMPANY Balance Sheet Assets Liabilities and Owners' Equity %24 %24 24 > >
The post-closing trial balances of two proprietorships on January 1, 2022, are presented below. Sorensen Company Lucas Company Dr. Cr. Dr. Cr. Cash $17,000 $14,400 Accounts receivable 21,000 31,000 Allowance for doubtful accounts $3,600 $5,300 Inventory 32,000 22,100 Equipment 54,000 35,000 Accumulated depreciation-equipment 28,800 13,200 Notes payable 21,600 18,000 Accounts payable 26,400 37,200 Sorensen, capital 43,600 Lucas, capital 28,800 $124,000 $124,000 $102,500 $102,500 Sorensen and Lucas decide to form a partnership, Blossom Company, with the following agreed upon valuations for noncash assets. Sorensen Company Lucas Company Accounts receivable $21,000 $31,000 Allowance for doubtful accounts 5,400 4,800 Inventory 33,600 24,000 Equipment 30,000 18,000 All cash will be transferred to the partnership, and the partnership will assume all the liabilities of the two proprietorships.
Transcribed Image Text:The post-closing trial balances of two proprietorships on January 1, 2022, are presented below. Sorensen Company Lucas Company Dr. Cr. Dr. Cr. Cash $17,000 $14,400 Accounts receivable 21,000 31,000 Allowance for doubtful accounts $3,600 $5,300 Inventory 32,000 22,100 Equipment 54,000 35,000 Accumulated depreciation-equipment 28,800 13,200 Notes payable 21,600 18,000 Accounts payable 26,400 37,200 Sorensen, capital 43,600 Lucas, capital 28,800 $124,000 $124,000 $102,500 $102,500 Sorensen and Lucas decide to form a partnership, Blossom Company, with the following agreed upon valuations for noncash assets. Sorensen Company Lucas Company Accounts receivable $21,000 $31,000 Allowance for doubtful accounts 5,400 4,800 Inventory 33,600 24,000 Equipment 30,000 18,000 All cash will be transferred to the partnership, and the partnership will assume all the liabilities of the two proprietorships.
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