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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 $14,000 $12,200 Accounts receivable 18,000 27,000 Allowance for doubtful accounts $3,100 $4,500 Inventory 27,000 18,800 Equipment 46,000 30,000 Accumulated depreciation-equipment 24,500 11,200 Notes payable 18,400 15,300 Accounts payable 22,400 31,600 Sorensen, capital 36,600 Lucas, capital 25,400 $105,000 $105,000 $88,000 $88,000 Sorensen and Lucas decide to form a partnership, Cullumber Company, with the following agreed upon valuations for noncash assets. Sorensen Company Lucas Company Accounts receivable $18,000 $27,000 Allowance for doubtful accounts 4,600 4,100 Inventory 28,600 20,400 Equipment 25,500 15,300 All cash will be transferred to the partnership, and the partnership will assume all the liabilities of the two proprietorships.

The post-closing trial balances of two proprietorships on January 1, 2022, are presented below. Sorensen Company Lucas Company Dr. Cr. Dr. Cr. Cash $14,000 $12,200 Accounts receivable 18,000 27,000 Allowance for doubtful accounts $3,100 $4,500 Inventory 27,000 18,800 Equipment 46,000 30,000 Accumulated depreciation-equipment 24,500 11,200 Notes payable 18,400 15,300 Accounts payable 22,400 31,600 Sorensen, capital 36,600 Lucas, capital 25,400 $105,000 $105,000 $88,000 $88,000 Sorensen and Lucas decide to form a partnership, Cullumber Company, with the following agreed upon valuations for noncash assets. Sorensen Company Lucas Company Accounts receivable $18,000 $27,000 Allowance for doubtful accounts 4,600 4,100 Inventory 28,600 20,400 Equipment 25,500 15,300 All cash will be transferred to the partnership, and the partnership will assume all the liabilities of the two proprietorships.

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 separate journal entries to record the transfer of each proprietorship’s assets and liabilities to the partnership.
  • Further, it is agreed that Sorensen will invest an additional $5,100 in cash, and Lucas will invest an additional $19.400 in cash. Journalize the additional cash investment by each partner.
  • Prepare a classified balance sheet for the partnership on January 1, 2022.
The post-closing trial balances of two proprietorships on January 1, 2022, are presented below. Sorensen Company Lucas Company Dr. Cr. Dr. Cr. Cash $14,000 $12,200 Accounts receivable 18,000 27,000 Allowance for doubtful accounts $3,100 $4,500 Inventory 27,000 18,800 Equipment 46,000 30,000 Accumulated depreciation-equipment 24,500 11,200 Notes payable 18,400 15,300 Accounts payable 22,400 31,600 Sorensen, capital 36,600 Lucas, capital 25,400 $105,000 $105,000 $88,000 $88,000 Sorensen and Lucas decide to form a partnership, Cullumber Company, with the following agreed upon valuations for noncash assets. Sorensen Company Lucas Company Accounts receivable $18,000 $27,000 Allowance for doubtful accounts 4,600 4,100 Inventory 28,600 20,400 Equipment 25,500 15,300 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 $14,000 $12,200 Accounts receivable 18,000 27,000 Allowance for doubtful accounts $3,100 $4,500 Inventory 27,000 18,800 Equipment 46,000 30,000 Accumulated depreciation-equipment 24,500 11,200 Notes payable 18,400 15,300 Accounts payable 22,400 31,600 Sorensen, capital 36,600 Lucas, capital 25,400 $105,000 $105,000 $88,000 $88,000 Sorensen and Lucas decide to form a partnership, Cullumber Company, with the following agreed upon valuations for noncash assets. Sorensen Company Lucas Company Accounts receivable $18,000 $27,000 Allowance for doubtful accounts 4,600 4,100 Inventory 28,600 20,400 Equipment 25,500 15,300 All cash will be transferred to the partnership, and the partnership will assume all the liabilities of the two proprietorships.
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