T. White, N. Martin, and F. Clark are forming The Blossom Partnership on December 1, 2024. White is transferring $32,400 of personal cash and equipment worth $27,000 to the partnership. Martin owns land worth $30,240 and a small building worth $81,000, which he transfers to the partnership. There is a long-term mortgage of $21,600 on the land and building, which the partnership assumes. Clark transfers cash of $7,560, accounts receivable of $38,880, supplies worth $3,240, and equipment worth $29.160 to the partnership. It is agreed that the allowance for doubtful accounts should be $4,320 for the partnership. Prepare a classified balance sheet for the partnership after the partners' investments on December 1, 2024. (List Current Assets in order of liquidity. List Property, Plant, and Equipment in order of Land, Buildings and Equipment.)

T. White, N. Martin, and F. Clark are forming The Blossom Partnership on December 1, 2024. White is transferring $32,400 of personal cash and equipment worth $27,000 to the partnership. Martin owns land worth $30,240 and a small building worth $81,000, which he transfers to the partnership. There is a long-term mortgage of $21,600 on the land and building, which the partnership assumes. Clark transfers cash of $7,560, accounts receivable of $38,880, supplies worth $3,240, and equipment worth $29.160 to the partnership. It is agreed that the allowance for doubtful accounts should be $4,320 for the partnership. Prepare a classified balance sheet for the partnership after the partners' investments on December 1, 2024. (List Current Assets in order of liquidity. List Property, Plant, and Equipment in order of Land, Buildings and Equipment.)

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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