Dr. Problem 12-01A a-c (Video) The post-closing trial balances of two proprietorships on January 1, 2020, are presented below. Sorensen Company Lucas Company Dr. Cr. Cr. Cash $13,000 $10,800 Accounts receivable 16,000 23,000 Allowance for doubtful accounts $2,700 $4,000 Inventory 24,000 16,600 Equipment 41,000 26,000 Accumulated depreciation-equipment 21,600 9,900 Notes payable 16,200 13,500 Accounts payable 19,800 27,900 Sorensen, capital 33,700 Lucas, capital 21,100 $94,000 $94,000 $76,400 $76,400 Sorensen and Lucas decide to form a partnership, Carla Vista Company, with the following agreed upon valuations for noncash assets. Accounts receivable Allowance for doubtful accounts Inventory Equipment Sorensen Company $16,000 4,100 25,200 22,500 Lucas Company $23,000 3,600 18,000 13,500 All cash will be transferred to the partnership, and the partnership will assume all the liabilities of the two proprietorships. Prepare separate journal entries to record the transfer of each proprietorship's assets and liabilities to the partnership. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Cash X Accounts Receivable Inventory Equipment Notes Payable Accounts Payable X Allowance for Doubtful Accounts Sorensen, Capital (Transfer of Sorensen's assets and liabilities.) Jan. 1 Cash Accounts Receivable Inventory Equipment x Notes Payable x Accounts Payable Allowance for Doubtful Accounts Lucas, Capital (Transfer of Lucas' assets and liabilities.) Your answer is partially correct. Try again. Further, it is agreed that Sorensen will invest an additional $4,500 in cash, and Lucas will invest an additional $17,100 in cash. Journalize the additional cash investment by each partner. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit Jan. 1 Cash Sorensen, Capital (To record Sorensen's investment.) X Jan. 1 Cash x Lucas, Capital (To record Lucas' investment.) Prepare a classified balance sheet for the partnership on January 1, 2020. (List Current Assets in order of liquidity.) CARLA VISTA COMPANY Balance Sheet January 1, 2020 Assets Current Assets Cash Accounts Receivable ID Less Accounts Receivable Inventory Total Current Assets Property, Plant and Equipment Equipment Total Assets Liabilities and Owners' Equity x Long-term Liabilities Accounts Payable Notes Payable DOO Total Liabilities Owners' Equity Sorensen, Capital Lucas, Capital Total Owners' Equity x Total Liabilities and Owners' Equity