]

The post-closing trial balances of two proprietorships on January 1, 2020, are presented below. Cash Accounts receivable Allowance for doubtful accounts Sorensen Company Dr. Cr. $15,000 18,000 $3,100 27,500 47,000 25,000 18,700 22,900 37,800 Lucas Company Dr. Cr. $12,500 27,000 $4,600 19,100 30,000 11,400 15,600 32,200 Inventory Equipment Accumulated depreciation-equipment Notes payable Accounts payable Sorensen, capital Lucas, capital 24,800 $107,500 $107,500 $88,600 $88,600 Sorensen and Lucas decide to form a partnership, Ivanhoe Company, with the following agreed upon valuations for noncash assets. Accounts receivable Allowance for doubtful accounts Sorensen Company $18,000 4,700 29,100 26,000 Lucas Company $27,000 4,200 20,800 15,600 Inventory Equipment 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 cach proprietorship's assets and liabilities to the partnership. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Jan. 1 + + + (Transfer of Sorensen's assets and liabilities.) Jan. 1 # + ** + + (Transfer of Lucas' assets and liabilides.) Further, it is agreed that Sorensen will invest an additional $5,200 in cash, and Lucas will invest an additional $19,800 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 Debit Credit Jan. 1 (To record Sorensen's investment.) Jan. 1 (To record Lucas' investment.) Prepare a classified balance sheet for the partnership on January 1, 2020. (List Current Assets in order of liquidity.) Prepare a classified balance sheet for the partnership on January 1, 2020. (List Current Assets in order of liquidity.) IVANHOE COMPANY Balance Sheet Assets $ 4 4 $ Liabilities and Owners' Equity 4 $ 4 4 $