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The post-closing trial balances of two proprietorships on January 1, 2022, are presented below. Sorensen Company Lucas Company Dr. Cr. Dr. Cr. Cash $16,000 $13,900 Accounts receivable 20,500 30,000 Allowance for doubtful accounts $3,500 $5,100 Inventory 30,500 21,300 Equipment 52,000 34,000 Accumulated depreciation-equipment 27,800 12.800 Notes payable 20,900 17,400" Accounts payable 25,500 36,000 Sorensen, capital 41,300 27,900 Lucas, capital $119,000 $119,000 $99,200 $99.200 Lucas, capital 27,900 $119,000 $119,000 $99,200 $99,200 Sorensen and Lucas decide to form a partnership, Sandhill Company, with the following agreed upon valuations for noncash assets. Sorensen Company Lucas Company Accounts receivable $20.500 $30,000 Allowance for doubtful accounts 5,200 4.600 Inventory 32.500 23.200 Equipment 29,000 17,400 All cash will be transferred to the partnership, and the partnership will assume all the liabilities of the two proprietorships. (a) Prepare separate journal entries to record the transfer of each shio's assets and liabilities to the partnership (Credit Prepare separate journal entries to record the transfer of each proprietorship's assets and liabilities to the partnership. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit Jan, 1

The post-closing trial balances of two proprietorships on January 1, 2022, are presented below. Sorensen Company Lucas Company Dr. Cr. Dr. Cr. Cash $16,000 $13,900 Accounts receivable 20,500 30,000 Allowance for doubtful accounts $3,500 $5,100 Inventory 30,500 21,300 Equipment 52,000 34,000 Accumulated depreciation-equipment 27,800 12.800 Notes payable 20,900 17,400" Accounts payable 25,500 36,000 Sorensen, capital 41,300 27,900 Lucas, capital $119,000 $119,000 $99,200 $99.200 Lucas, capital 27,900 $119,000 $119,000 $99,200 $99,200 Sorensen and Lucas decide to form a partnership, Sandhill Company, with the following agreed upon valuations for noncash assets. Sorensen Company Lucas Company Accounts receivable $20.500 $30,000 Allowance for doubtful accounts 5,200 4.600 Inventory 32.500 23.200 Equipment 29,000 17,400 All cash will be transferred to the partnership, and the partnership will assume all the liabilities of the two proprietorships. (a) Prepare separate journal entries to record the transfer of each shio's assets and liabilities to the partnership (Credit Prepare separate journal entries to record the transfer of each proprietorship's assets and liabilities to the partnership. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit Jan, 1

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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739 The post-closing trial balances of two proprietorships on January 1, 2022, are presented below. Sorensen Company Lucas Company Dr. Cr. Dr. Cr. Cash $16,000 $13,900 Accounts receivable 20,500 30,000 Allowance for doubtful accounts $3,500 $5,100 Inventory 30,500 21,300 Equipment 52,000 34,000 Accumulated depreciation-equipment 27,800 12,800 Notes payable 20,900 17,400 Accounts payable 25,500 36,000 Sorensen, capital 41,300 Lucas, capital 27,900 $119,000 $119,000 $99.200 $99.200 Lucas, capital 27,900 $119,000 $119.000 $99,200 $99,200 Sorensen and Lucas decide to form a partnership, Sandhill Company, with the following agreed upon valuations for noncash assets. Sorensen Company Lucas Company Accounts receivable $20.500 $30,000 Allowance for doubtful accounts 5,200 4,600 Inventory 32,500 23.200 Equipment 29,000 17,400 All cash will be transferred to the partnership, and the partnership will assume all the liabilities of the two proprietorships. (a) Prepare separate journal entries to record the transfer of each proprietorship's assets and liabilities to the partnership. (Credit Prepare separate journal entries to record the transfer of each proprietorship's assets and liabilities to the partnership. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit Jan, 1
Transcribed Image Text:739 The post-closing trial balances of two proprietorships on January 1, 2022, are presented below. Sorensen Company Lucas Company Dr. Cr. Dr. Cr. Cash $16,000 $13,900 Accounts receivable 20,500 30,000 Allowance for doubtful accounts $3,500 $5,100 Inventory 30,500 21,300 Equipment 52,000 34,000 Accumulated depreciation-equipment 27,800 12,800 Notes payable 20,900 17,400 Accounts payable 25,500 36,000 Sorensen, capital 41,300 Lucas, capital 27,900 $119,000 $119,000 $99.200 $99.200 Lucas, capital 27,900 $119,000 $119.000 $99,200 $99,200 Sorensen and Lucas decide to form a partnership, Sandhill Company, with the following agreed upon valuations for noncash assets. Sorensen Company Lucas Company Accounts receivable $20.500 $30,000 Allowance for doubtful accounts 5,200 4,600 Inventory 32,500 23.200 Equipment 29,000 17,400 All cash will be transferred to the partnership, and the partnership will assume all the liabilities of the two proprietorships. (a) Prepare separate journal entries to record the transfer of each proprietorship's assets and liabilities to the partnership. (Credit Prepare separate journal entries to record the transfer of each proprietorship's assets and liabilities to the partnership. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit Jan, 1
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