On December 31, 2019, Demetrius and Garnett agree to combine their sole proprietorships into a partnership. Their balance sheets on December 31 are shown as follows:

Required

1. Journalize the contributions of Demetrius and Garnett to the partnership.

2. Prepare the partnership balance sheet at December 31, 2019.

Transcribed Image Text:

Demetrius's Business Garnett's Business Current Current Вook Value Market Book Market Value Value Value Assets Cash $ 9,000 $ 9,000 $ 3,000 $ 3,000 Accounts Receivable 23,000 21,000 16,000 14,000 Inventory 49,000 43,000 40,000 40,000 Vehicles, Net 126,000 108,000 54,000 58,000 Total Assets $ 207,000 $ 181,000 $ 113,000 $ 115,000 Liabilities and Owner's Equity Accounts Payable $ 23,000 $ 23,000 $ 12,000 $ 12,000 Other Accrued Payables 13,000 13,000 Notes Payable 53,000 53,000 Demetrius, Capital 118,000 ? Garnett, Capital 101,000 ? Total Liabilities and Owner's Equity $ 207,000 $ 181,000 $ 113,000 $ 115,000