The post$-$closing trial balances of two proprietorships on January $1,2022,$ are presented below.

Sorensen and Lucas decide to form a partnership, Ivanhoe Company, with the following agreed upon valuations for

noncash assets.

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

proprietorships.

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.$)$