Please the last exercise :-) Thank you!
The post-closing trial balances of two proprietorships on January 1, 2020, are presented below. Sorensen Company Lucas Company Dr. Cr. Dr. Cr. Cash $13,000 $11,300 Accounts receivable 16,500 24,000 Allowance for doubtful accounts $2,800 $4,100 Inventory 25,000 17,300 Equipment 42,000 27,000 Accumulated depreciation equipment 22,600 10,300 Notes payable 16,900 14,100 Accounts payable 20,700 29,100 Sorensen, capital 33,500 Lucas, capital 22,000 $96,500 $96,500 $79,600 $79,600 Sorensen and Lucas decide to form a partnership, Wildhorse Company, with the following agreed upon valuations for noncash assets. Sorensen Company Lucas Company Accounts receivable $16,500 $24,000 Allowance for doubtful accounts 4,200 3,800 Inventory 26,300 18,800 Equipment 23,500 14,100 All cash will be transferred to the partnership, and the partnership will assume all the liabilities of the two proprietorships. Your answer is correct. Prepare separate journal entries to record the transfer of each proprietorship's assets and liabilities to the partnership. (Credit a Date Account Titles and Explanation Debit Credit Jan. 1 Cash 13000 Accounts Receivable 16500 Inventory 26300 Equipment - 23500 Allowance for Doubtful Accounts 4200 Notes Payable 16900 Accounts Payable 20700 Sorensen, Capital 37500 (Transfer of Sorensen's assets and liabilities.) Jan. 1 Cash 11300 Accounts Receivable 24000 Inventory 18800 Equipment 14100 Allowance for Doubtful Accounts 3800 Notes Payable 14100 Accounts Payable 29100 Lucas, Capital 21200 (b) Your answer is correct. Further, it is agreed that Sorensen will invest an additional $4,700 in cash, and Lucas will invest an additional $17,900 in cash. Journalize the additional cas No. Account Titles and Explanation Debit Credit Jan. 1 Cash 4700 Sorensen, Capital 4700 (To record Sorensen's investment.) Jan. 1 Cash 17900 Lucas, Capital 17900 (To record Lucas' investment.) (c) Your answer is partially correct. Prepare a classified balance sheet for the partnership on January 1, 2020. (List Current Assets in order of liquidity.) WILDHORSE COMPANY Balance Sheet January 1, 2020 Assets Current Assets Cash 22600 Accounts Receivable 40500 Less Allowance for Doubtful Accounts 8000 32500 Inventory 45100 Total Current Assets 100200 Property, plant and Equipment Equipment 37600 Total Assets 137800 Liabilities and Owners' Equity Current Liabilities Notes Payable $ 31000 Accounts Payable 49800 Total Liabilities 80800 Owners' Equity Sorensen, Capital 37500 Lucas, Capital 21200 Total Owners' Equity 58700 Total Liabilities and Owners' Equity 139500
