Problem 12-01A a-c (Video) The post-closing trial balances of two proprietorships on January 1, 2020, are presented below. Sorensen Company Dr. Cr. $15,000 19,000 $3,200 Lucas Company Dr. Cr. $13,000 28,000 $4,800 19,900 31,000 11,900 16,200 33,500 Cash Accounts receivable Allowance for doubtful accounts Inventory Equipment Accumulated depreciation-equipment Notes payable Accounts payable Sorensen, capital Lucas, capital 28,500 49,000 25,900 19,400 23,800 39,200 25,500 $91,900 $111,500 $111,500 $91,900 Sorensen and Lucas decide to form a partnership, Pharoah Company, with the following agreed upon valuations for noncash assets. Lucas Company Accounts receivable Allowance for doubtful accounts Inventory Equipment Sorensen Company $19,000 4,900 30,200 27,000 $28,000 4,300 21,600 16,200 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 $5,400 in cash, and Lucas will invest an additional $20,500 in cash. 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 (Transfer of Sorensen's assets and liabilities.) Jan. 1 (Transfer of Lucas' assets and liabilities.) No. Account Titles and Explanation Debit Credit Jan. 1 (To record Sorensen's investment.) Jan. 1 (To record Lucas' investment.) Prepare a classified balance sheet for the partnership on January 1, 2020. (List Current Assets in order of liquidity.) PHAROAH COMPANY Balance Sheet Assets