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.
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
Less: Allowance for doubtful accounts 1,200
Equipment 20,000
Less:
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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