*Problem 12-1A (Part Level Submission) The post-closing trial balances of two proprietorships on January 1, 2014, are presented below. Sorensen Company Lucas Company Cash $14,240 $12,360 Accounts receivable 17,520 26,430 Allowance for doubtful accounts $2,820 $4,860 Inventory 26,810 18,460 Equipment 44,700 28,940 Accumulated depreciationequipment 23,870 11,030 Notes payable 17,550 15,300 Accounts payable 21,920 31,090 Sorensen, capital 37,110 Lucas, capital 23,910 j103,270 j103,270 $86,190 $86,190 Sorensen and Lucas decide to form a partnership, 5qu Company, with the following agreed upon valuations for noncash assets. Accounts receivable $17,520 $26,430 Allowance for doubtful accounts 4,890 4,190 Inventory 27,660 19,510 Equipment 24,800 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 $5,040 in cash, and Lucas will invest an additional $20,980 in cash. Answer SDLU CO H PAN? Balance Sheet January 1, 2014 Problem 121A [Part Level Submission) {a} Prepare separate journal entri to remrd the transfer 01 each pmprieturship's assets and liabilities in the par In. mun-Ia Eula-nun . 1. ea. = 14,240 .r . . mm\" WWW - 11520 J E- a: INVEIIWI'Y 3 21660 ; "' Iluwance for Doubtful Accuun I: |5301Cl I 9060 I -- -- Equhmellt 3 24,300 .r Nata Payable 3 1?,550 ADDnullIs Payable 3 21,920 Allowance In! Delblful Amour\": 3 4,390 Surmsen, Capilal 3 39,360 (Tlansfu Ii m ES aid m) 2- as. : 12,360 Amend: Re'vable 3 26,430 Irwellbury 3 19,510 Equipment = 16,200 Nub Payable 3 15,300 humunls Payable 3 31,090 Nlummz lw DuLIJh'ul mm: 3 4,190 Lucas, Caplal = 23,920 (TlansFa'olLuca' assels am Iabiiili.) v. (b) Joumalize the additional rash investment by each partner. (Credit acnuml' titles are automab'nal'l'y inden ' J . , ~ urensen Ca I ital 3" ' ' L | the. =| 5,040 | Surmsell, Capilal =| 5,040 {Tu mind Susan's Wait] 2. | g. =| 20,950 .I | Luas, Caplal 3| 20,950 (Tu retard Lucas' ininmeMJ