Question
Penner and Torres decide to merge their proprietorships into a partnership called Pentor Company. The balance sheet of Torres Co. shows: Accounts receivable $26,500 Less:
Penner and Torres decide to merge their proprietorships into a partnership called Pentor Company. The balance sheet of Torres Co. shows:
| Accounts receivable | $26,500 | |
| Less: Allowance for doubtful accounts | 1,855 | $24,645 |
| Equipment | 44,300 | |
| Less: Accumulated depreciationequip. | 15,505 | 28,795 |
The partners agree that the net realizable value of the receivables is $22,260and that the fair value of the equipment is $24,365. Indicate how the accounts should appear in the opening balance sheet of the partnership.
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Accounting Information Systems
Authors: Cynthia D Heagy, Constance M Lehmann
7th Edition
1111219516, 978-1111219512
