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Problems: Set A Prepare entries for formation of partnership and a buce sheet GLS Dr. Cr. P12.1A (LO 1, 2) Financial Statement The post-closing trial

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Problems: Set A Prepare entries for formation of partnership and a buce sheet GLS Dr. Cr. P12.1A (LO 1, 2) Financial Statement The post-closing trial balances of two proprietorships on January 1, 2020, are presented below. Sorensen Company Lucas Company Dr. Cash $ 14,000 $12,000 Accounts receivable 17,500 26,000 Allowance for doubtful accounts $ 3,000 Inventory 26.500 18,400 Equipment 45,000 29.000 Accumulated depreciation equipment 24,000 11.000 Notes payable 18.000 15.000 Accounts payable 22.000 31.000 Sorensen, capital 36,000 Lucas, capital 24.000 $103.000 $103.000 $85,400 ||| Sorensen and Lucas decide to form a partnership. Solu Company, with the following agreed upon valu ions for noncash assets. Accounts receivable Allowance for doubtful accounts Inventory Equipment Sorensen Company $17.500 4.500 28.000 25,000 Lucas Company $26.000 4,000 20,000 15.000 All cash will be transferred to the parnership, and the partnership will assume all the liabilities of the two proprietorships. Further, it is a greed that Sorensen will invest an additional 55.000 in cash, and Lucas will invest an additional $19,000 in cash. Instructions a. Prepare separate journal entries to record the transfer of each proprietorship's and liabilities to the partnership b. Journalize the additional cash investment by cach partner c. Prepare a classified balance sheet for the partnership on January 1, 2020. P12.2A (LO2) Financial Statement At the end of its first year of operations on December 31, 2020, NBS Company's accounts show the following Sorensen, Capital S40,000 Lucas, Capital $23,000 Total assets $173,000 Journalise division of net income and prepare a partners' capital Partner Art Niensted Greg Bolen Krista Sayler Drawings $23.000 14,000 10,000 Capital $48.000 DO 25.000

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