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. Dr. Cr. Cash $11,000 $9,400 Accounts receivable 13,500 20,000 Allowance for doubtful accounts $2,300 $3,400 Inventory 20,500 14,400 Equipment 35,000 23,000 Accumulated depreciation-equipment 18,700 8,600 Notes payable 14,000 11,700 Accounts payable 17,200 24,200 Sorensen, capital 27,800 Lucas, capital 18,900 $80,000 $80,000 $66,800 $66,800 Sorensen and Lucas decide to form a partnership, Cullumber Company, with the following agreed upon valuations for noncash assets. Sorensen Company Lucas Company Accounts receivable $13,500 $20,000 Allowance for doubtful accounts 3,100 3,500 Inventory 21,800 15,600 Equipment 19,500 11,700 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 Sorensen will invest an additional $3,900 in cash, and Lucas will invest an additional $14,800 in cash Your answer is partially correct. Try again. 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.) 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 11000 Accounts Receivable 13500 Inventory 20500 Equipment 35000 Allowance for Doubtful Accounts 2300 Notes Payable 14000 Accounts Payable 17200 Sorensen, Capital 27800 (Transfer of Sorensen's assets and liabilities.) Jan. 1 Cash 9400 Accounts Receivable 20000 Inventory 14400 Equipment 23000 Allowance for Doubtful Accounts 3400 Notes Payable 11700 Accounts Payable 24200 Lucas, Capital 18900 (Transfer of Lucas' assets and liabilities.) Your answer is partially correct. Try again. Prepare a classified balance sheet for the partnership on January 1, 2020. (List Current Assets in order of liquidity.) CULLUMBER COMPANY Balance Sheet January 1, 2020 Assets Current Assets Cash 39100 Accounts Receivable 33500 Less 27800 5700 Allowance for Doubtful Accounts Inventory 34900 Total Current Assets 101800 Property, Plant and Equipment oment 58000 159800 Total Assets Liabilities and Owners' Equity Current Liabilities Accounts Payable 41400 Notes Payable 25700 Total Current Liabilities 67100 Owners' Equity Sorensen, Capital 31700 33700 Lucas, Capital Total Owners' Equity 65400 Total Liabilities and Owners' Equity 132500