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Yin and Yang decide to merge their proprieorships into a partnership called YY Company. The statement of financial position of YY Co. shows (amounts in thousand) Account receivable                                     16,000 Less: Allowance for doubtful accounts         1,200 Equipment                                                  20,000 Less: Accumulated depreciation - equip.     7,000   The partners agree that the net relizable value of the receivables is 14,500 and that the fair value of the equipment is 11,000. Indicate how the accounts should appear in the opening statement of financial position of the partnership.

Yin and Yang decide to merge their proprieorships into a partnership called YY Company. The statement of financial position of YY Co. shows (amounts in thousand) Account receivable                                     16,000 Less: Allowance for doubtful accounts         1,200 Equipment                                                  20,000 Less: Accumulated depreciation - equip.     7,000   The partners agree that the net relizable value of the receivables is 14,500 and that the fair value of the equipment is 11,000. Indicate how the accounts should appear in the opening statement of financial position of the partnership.

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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Yin and Yang decide to merge their proprieorships into a partnership called YY Company. The statement of financial position of YY Co. shows (amounts in thousand)

Account receivable                                     16,000

Less: Allowance for doubtful accounts         1,200

Equipment                                                  20,000

Less: Accumulated depreciation - equip.     7,000

 

The partners agree that the net relizable value of the receivables is 14,500 and that the fair value of the equipment is 11,000.

Indicate how the accounts should appear in the opening statement of financial position of the partnership.

 

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