The post-closing trial balances of two proprietorships on January 1, 2020, are presented below. Sorensen Company Dr. Cr. $17,000 21,500 Lucas Company Dr. Cr. $14,600 32,000 $3,700 $5,400 32,500 55,000 22,400 35,000 Cash Accounts receivable Allowance for doubtful accounts Inventory Equipment Accumulated depreciation- equipment Notes payable Accounts payable Sorensen, capital Lucas, capital 29,300 13,400 22,000 26,800 44,200 18,300 37,800 29,100 $104,000 $126,000 $126,000 $104,000 Sorensen and Lucas decide to form a partnership, Crane Company, with the following agreed upon valuations for noncash assets. Accounts receivable Allowance for doubtful accounts Inventory Equipment Sorensen Company $21,500 5,500 34,200 30,500 Lucas Company $32,000 4,900 24,400 18,300 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 accou Date Account Titles and Explanation Debit Credit Jan. 1 (Transfer of Sorensen's assets and liabilities.) Jan. 1