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				$9,100
Accounts receivable		13,500				20,000
Allowance for doubtful accounts				$2,300				$3,300
Inventory		20,000				14,000
Equipment		34,000				22,000
Accumulated depreciationequipment				18,200				8,400
Notes payable				13,700				11,400
Accounts payable				16,700				23,600
Sorensen, capital				27,600
Lucas, capital								18,400
		$78,500		$78,500		$65,100		$65,100

Sorensen and Lucas decide to form a partnership, Crane Company, with the following agreed upon valuations for noncash assets.

		Sorensen Company		Lucas Company
Accounts receivable		$13,500		$20,000
Allowance for doubtful accounts		3,400		3,000
Inventory		21,300		15,200
Equipment		19,000		11,400

All cash will be transferred to the partnership, and the partnership will assume all the liabilities of the two proprietorships.

A-PREPARE SEPARATE JOURNAL ENTRIES TO RECORD THE TRANSFER OF EACH PROPRIETORSHIP'S ASSETS AND LIABILITIES TO THE PARTNERSHIP.

B-Further, it is agreed that Sorensen will invest an additional $3,800 in cash, and Lucas will invest an additional $14,400 in cash. Journalize the additional cash investment by each partner.

C-PREPARE A CLASSIFIED BALANCE SHEET FOR THE PARTNERSHIP ON JAN 1,2020.

PLEASE HELP ME.......