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The trial balances of two proprietorships on January 1, 2024, follow: Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Equipment Accumulated depreciation-equipment Accounts payable I. William, capital P. Brown, capital William Company Dr. $8,680 10,850 Accounts receivable-net realizable value Merchandise inventory Equipment 16,430 27,900 Cr. $1,860 William $8,060 17,360 15,500 14,880 24,800 22,320 Brown Company Dr. Cr. $7,440 16,120 11,408 17,980 Brown $13,020 12,400 21,700 $2,728 14,880 $63,860 $63,860 $52,948 $52,948 William and Brown decide to form a partnership on January 1 and agree on the following valuations for the noncash assets that they are each contributing: 6,820 28,520 All of the assets in each of the proprietorships will be transferred to the partnership. The partnership will also assume all the liabilities of the two proprietorships. William and Brown are also agreed that Brown will invest the amount of cash required so their investments in the partnership are equal.

The trial balances of two proprietorships on January 1, 2024, follow: Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Equipment Accumulated depreciation-equipment Accounts payable I. William, capital P. Brown, capital William Company Dr. $8,680 10,850 Accounts receivable-net realizable value Merchandise inventory Equipment 16,430 27,900 Cr. $1,860 William $8,060 17,360 15,500 14,880 24,800 22,320 Brown Company Dr. Cr. $7,440 16,120 11,408 17,980 Brown $13,020 12,400 21,700 $2,728 14,880 $63,860 $63,860 $52,948 $52,948 William and Brown decide to form a partnership on January 1 and agree on the following valuations for the noncash assets that they are each contributing: 6,820 28,520 All of the assets in each of the proprietorships will be transferred to the partnership. The partnership will also assume all the liabilities of the two proprietorships. William and Brown are also agreed that Brown will invest the amount of cash required so their investments in the partnership are equal.

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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The trial balances of two proprietorships on January 1, 2024, follow: Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Equipment Accumulated depreciation-equipment Accounts payable I. William, capital P. Brown, capital William Company Accounts receivable-net realizable value Merchandise inventory Equipment Dr. $8,680 10.850 16,430 27,900 William $8,060 Cr. 17,360 $1,860 15,500 14,880 24,800 22,320 Brown Company Dr. Brown $13,020 12,400 21,700 $7,440 16,120 14,880 $63,860 $63,860 $52,948 $52,948 William and Brown decide to form a partnership on January 1 and agree on the following valuations for the noncash assets that they are each contributing: 11,408 17,980 Cr. $2,728 6,820 28,520 All of the assets in each of the proprietorships will be transferred to the partnership. The partnership will also assume all the liabilities of the two proprietorships. William and Brown are also agreed that Brown will invest the amount of cash required so their investments in the partnership are equal.
Transcribed Image Text:The trial balances of two proprietorships on January 1, 2024, follow: Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Equipment Accumulated depreciation-equipment Accounts payable I. William, capital P. Brown, capital William Company Accounts receivable-net realizable value Merchandise inventory Equipment Dr. $8,680 10.850 16,430 27,900 William $8,060 Cr. 17,360 $1,860 15,500 14,880 24,800 22,320 Brown Company Dr. Brown $13,020 12,400 21,700 $7,440 16,120 14,880 $63,860 $63,860 $52,948 $52,948 William and Brown decide to form a partnership on January 1 and agree on the following valuations for the noncash assets that they are each contributing: 11,408 17,980 Cr. $2,728 6,820 28,520 All of the assets in each of the proprietorships will be transferred to the partnership. The partnership will also assume all the liabilities of the two proprietorships. William and Brown are also agreed that Brown will invest the amount of cash required so their investments in the partnership are equal.
Prepare separate journal entries to record the transfer of each proprietorship's assets and liabilities to the partnership o 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries befo entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Jan. 1 Jan. 1 Cash Accounts Receivable Merchandise Inventory Equipment Allowance for Doubtful Accounts Accounts Payable I. William, Capital (To invest assets in business by William.) (To invest assets in business by Brown.) Debit 8680 10850 17360 IONO OOOOOOO Credit 0000000 04:00] 24800
Transcribed Image Text:Prepare separate journal entries to record the transfer of each proprietorship's assets and liabilities to the partnership o 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries befo entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Jan. 1 Jan. 1 Cash Accounts Receivable Merchandise Inventory Equipment Allowance for Doubtful Accounts Accounts Payable I. William, Capital (To invest assets in business by William.) (To invest assets in business by Brown.) Debit 8680 10850 17360 IONO OOOOOOO Credit 0000000 04:00] 24800
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