The post-closing trial balances of two proprietorships on January 1, 2017, are presented below. Wonder Company Price Company Dr. Cr. Dr. Cr. Cash $ 9,500 $ 6,000 Accounts receivable 15,000 23,000 Allowance for doubtful accounts $ 2,500 $ 4,000 Inventory 28,000 17,000 Equipment 50,000 30,000 Accumulated depreciationequipment 24,000 13,000 Notes payable 25,000 Accounts payable 20,000 37,000 Wonder, capital 31,000 Price, capital 22,000 $102,500 $102,500 $76,000 $76,000 Wonder and Price decide to form a partnership, Wonder-Price Company, with the following agreed upon valuations for noncash assets.

Wonder Company Price Company Accounts receivable $15,000 $23,000 Allowance for doubtful accounts 3,500 5,000 Inventory 32,000 21,000 Equipment 28,000 18,000

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 Wonder will invest an additional $3,000 in cash, and Price will invest an additional $13,000 in cash.

Instructions (a) Prepare separate journal entries to record the transfer of each proprietorships assets and liabilities to the partnership. (b) Journalize the additional cash investment by each partner. (c) Prepare a balance sheet for the partnership on January 1, 2017.