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Sonoma Company and Woodberry Company decide to merge their proprietorships into a partnership called Sonberry Company. The balance sheet of Woodberry Company shows: Accounts receivable

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Sonoma Company and Woodberry Company decide to merge their proprietorships into a partnership called Sonberry Company. The balance sheet of Woodberry Company shows: Accounts receivable Less: Allowance for doubtful accounts Equipment Less: Accumulated depreciation-equip. $16,500 $18,000 1,500 $20,000 10,000 $10,000 The partners agree that the net realizable value of the receivables is $16,000 and that the fair value of the equipment is $15,000. Indicate how the four accounts should appear in the opening balance sheet of the partnership. SONDERSON The Fig & Olive Co. reports net income of $24,000. Interest allowances are Fig $3.000 and Olive $5.000, partner salary allowances are Fig $18,000 and Olive $10,000 and the remainder is shared equally Indicate the division of net income to each partner. (If an amount reduces the account balance then enter with a negative sign preceding the number eg.-15,000 or parentheses eg. (15,0001) Division of Net Income Fie Olive Total Salary allowance Interest allowance on partners capital Total stories and interest Remaining income Total division of net income $ $ $ Prepare the entry to distribute the net income (Credit account titles are automatically indented when the amount is entered. Do not Indent manual) Account Titles and Explanation Debit Credit Southern Skies Co. had beginning capital balances on January 1, 2020, as follows: Patty Sharp $30,000 and During the year, drawings were Sharp $15.000 and O'Connor $8,000. Net income was $40,000, and the partners share income equally Prepare the partners capital statement for the year. (List items that increase partners' capital first) SOUTHERN SKIES COMPANY Partners' Capital Statement Sharp O'Connor Total $ $ $ $ After liquidatiog noncash assets and paying creditors, account balances in the Main Coare Cash $29.000, Art, Capital (Cr.)$11,000, Bob Capital (Cr) $8,000 and Cam. Capital (Cr) $10,000. The partners share income equally Journalize the final distribution of cash to the partners. (Credit account titles are automatically indented when the amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit

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