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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8fcb2168-4edc-441d-8d35-bd7abdfcf6e5%2F59813b33-7ff8-490d-867b-d154cd747213%2F6rqz2z_processed.png&w=3840&q=75)
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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