On December 31, 2008, Dana Farrell and Lou Flores agree to combine their proprietorships as a partnership. Their balance sheets on December 31 are shown on this and the next page.

Requirement

Prepare the partnership balance sheet at December 31, 2008. 

Transcribed Image Text:

Assets Cash....... Accounts receivable...... Inventory Plant assets (net). Total assets. Farrell's Business Flores's Business Current Current Book Market Book Market Value Value Value Value $ 10,000 $ 10,000 $ 4,000 $ 4,000 22,000 20,000 8,000 6,000 51,000 45,000 35,000 35,000 121,000 103,000 53,000 57,000 $204,000 $178,000 $100,000 $102,000