E12-12 On October 31, 20X2, Steve Klatt and Russell Stover agree to combine their propri- etorships as a partnership. Their balance sheets on October 31 are shown on page 492. Required Prepare the partnership balance sheet at October 31, 20X2.

B D E F C VALAHU, LEMAN, AND SUCRE Sale of Noncash Assets (For $136,000) 456 Noncash Valahu Leman Cash Assets Liabilities Capital Capital Sucre Capital 11 12 13 7680-2345 $ 6,000 $126.000 $77.000 $12,000 136.000 (126.000) ? $37.000 ? $6.000 ? 9 10 $142,000 0 $77,000 $ ? $ ? $ ? (SA8-SB7) .25 14 15 (For $90,000) 16 17 67 Cash Noncash Assets Valahu Liabilities Capital Leman Capital Sucre Capital 122222 18 $ 6.000 19 90.000 $126,000 (126,000) $77,000 $12,000 ? $37,000 ? $6.000 ? 20 $96.000 $ 0 $77,000 $ ? $ ? $ ? 23 (SA19-SB18) .25 24 Klatt's Business Stover's Business Current Current Book Market Book Market Value Value Value Value Assets Cash. Accounts receivable (net) Inventory Plant assets (net) Total assets.... Liabilities and Capital Accounts payable. Accrued expenses payable. Notes payable.. Klatt. capital... Stover, capital Total liabilities and capital........ $ 3,700 $ 3.700 $ 4.000 $ 4.000 22.000 20.200 8.000 6.300 51,000 46.000 34.000 35.100 121.800 103.500 53.500 57.400 $198,500 $173.400 $99.500 $102,800 $ 25,500 $ 25,500 $ 8.300 $ 8.300 2,200 55,000 2,200 55,000 1,400 1,400 115,800 ? 89,800 $198,500 $173.400 $99.500 $102,800