Question: the post-closing trail balance of two proprietorships on Jan 1 2022 are presented below Sorensen Co Lucas Co cash Dr. 17,000 Cr. Dr. Cr. 14,600 accounts Receivable 21,500 32,000 allowance for doubtful accounts 3700 5400 inventory 32,500 22,400 Equipment 55000 35000 accumulated depreciation equipment Cr. 29,300 Notes Payable Sorensen Capital Lucas Capital Total debits Lucas co 22000 44200 13,400 18300 29100 Total Debits sorensen co 126,000 Credits 126,000 104,000 Cr, 104,000 Sorensen and Lucss decide to form a partnership Crane Co with the following agreed upon valuations for non cash assets Sorensen Co AR 21500 allowance for doubtful accounts 5599 inventory 34,200 equipment 20.500 Lucas Co AR 32,000 AFDC 4900 inventory 24400 Equipment 18300 all cash will be transferred to the partnership, and the partnership will assume all the liabilities of the proprietorships A) prepare separate joiurnal entries to record the transfer of each proprietorship's assets and liabilties to the partnership B) Further, it is agreed that Sorensen will invest an additional 6100 cash and Lucas will invest an additional 23,200 in cash. journalize the additional cash investments by each partner. C) show a classified balance sheet for the partnership on Jan 1 2022
Question: the post-closing trail balance of two proprietorships on Jan 1 2022 are presented below Sorensen Co Lucas Co cash Dr. 17,000 Cr. Dr. Cr. 14,600 accounts Receivable 21,500 32,000 allowance for doubtful accounts 3700 5400 inventory 32,500 22,400 Equipment 55000 35000 accumulated depreciation equipment Cr. 29,300 Notes Payable Sorensen Capital Lucas Capital Total debits Lucas co 22000 44200 13,400 18300 29100 Total Debits sorensen co 126,000 Credits 126,000 104,000 Cr, 104,000 Sorensen and Lucss decide to form a partnership Crane Co with the following agreed upon valuations for non cash assets Sorensen Co AR 21500 allowance for doubtful accounts 5599 inventory 34,200 equipment 20.500 Lucas Co AR 32,000 AFDC 4900 inventory 24400 Equipment 18300 all cash will be transferred to the partnership, and the partnership will assume all the liabilities of the proprietorships A) prepare separate joiurnal entries to record the transfer of each proprietorship's assets and liabilties to the partnership B) Further, it is agreed that Sorensen will invest an additional 6100 cash and Lucas will invest an additional 23,200 in cash. journalize the additional cash investments by each partner. C) show a classified balance sheet for the partnership on Jan 1 2022
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question:
the post-closing trail balance of two proprietorships on Jan 1 2022 are presented below
Sorensen Co
Lucas Co
cash
Dr.
17,000
Cr.
Dr.
Cr.
14,600
accounts Receivable 21,500
32,000
allowance for doubtful accounts 3700
5400
inventory
32,500
22,400
Equipment
55000
35000
accumulated depreciation equipment Cr. 29,300
Notes Payable
Sorensen Capital
Lucas Capital
Total debits Lucas co
22000
44200
13,400
18300
29100
Total Debits sorensen co 126,000 Credits 126,000
104,000 Cr, 104,000
Sorensen and Lucss decide to form a partnership Crane Co with the following agreed upon valuations for non cash assets
Sorensen Co
AR 21500
allowance for doubtful accounts 5599
inventory 34,200
equipment 20.500
Lucas Co
AR 32,000
AFDC 4900
inventory 24400
Equipment 18300
all cash will be transferred to the partnership, and the partnership will assume all the liabilities of the proprietorships
A) prepare separate joiurnal entries to record the transfer of each proprietorship's assets and liabilties to the partnership
B) Further, it is agreed that Sorensen will invest an additional 6100 cash and Lucas will invest an additional 23,200 in cash.
journalize the additional cash investments by each partner.
C) show a classified balance sheet for the partnership on Jan 1 2022
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