P12-1B The post-closing trial balances of two proprietorships on January 1, 2012, are pre- Prepare entries for formation sented below. of a partnership and a balance Skorr Company Crane Company sheet. Dr. (SO 2, 4) Cr. Dr. Cr. Cash $ 10,000 $ 8,000 GLS Accounts receivable 18,000 30,000 Allowance for doubtful accounts $ 2,000 $ 3,000 Inventory 35,000 20,000 Equipment 60,000 35,000 Accumulated depreciation -equipment 28,000 15,000 Notes payable 20,000 Accounts payable 30,000 40,000 Skorr, capital 43,000 Crane, capital 35,000 $123,000 $123,000 $93,000 $93,000 Skorr and Crane decide to form a partnership, Commander Company, with the following agreed upon valuations for noncash assets. Skorr Company Crane Company Accounts receivable $18,000 $30,000 Allowance for doubtful accounts 2,500 4,000 Inventory 38,000 25,000 Equipment 40,000 22,000 All cash will be transferred to the partnership, and the partnership will assume all the liabilities of the two proprietorships. Further, it is agreed that Skorr will invest an additional $3,500 in cash, and Crane will invest an additional $16,000 in cash