The post-closing trial balances of two proprietorships on January 1, 2022, are presented below. Sorensen Company Lucas Company Dr. Cr. Dr. Cr. Cash $16,000 $13,900 Accounts receivable 20,500 30,000 Allowance for doubtful accounts $3,500 $5,100 Inventory 30,500 21,300 Equipment 52,000 34,000 Accumulated depreciation-equipment 27,800 12,800 Notes payable Accounts payable Sorensen, capital 20,900 17,400 25,500 36,000 41,300 Lucas, capital 27,900 $119,000 $119,000 $99,200 $99,200 Sorensen and Lucas decide to form a partnership, Sandhill Company, with the following agreed upon valuations for noncash assets. Sorensen Company Lucas Company Accounts receivable $20,500 $30,000 Allowance for doubtful accounts 5,200 4,600 Inventory 32,500 23,200 Equipment 29,000 17,400 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 Jan. 1 (Transfer of Sorensen's assets and liabilities.) (Transfer of Lucas' assets and liabilities.) Further, it is agreed that Sorensen will invest an additional $5,800 in cash, and Lucas will invest an additional $22,000 in cash. Journalize the additional cash investment by each partner. (Credit account titles are automatically Indented when amount is entered. Do not Indent manually.) No. Account Titles and Explanation Jan. 1 Jan. 1 (To record Sorensen's investment.) (To record Lucas' investment.) Debit Credit Prepare a classified balance sheet for the partnership on January 1, 2022. (List Current Assets In order of liquidity.) SANDHILL COMPANY Balance Sheet Assets 89 $ Liabilities and Owners' Equity > SA $ $