The trial balances of two proprietorships on January 1, 2024, follow: Garcia Company Lee Company Cash Dr. Cr. Dr. Cr. Accounts receivable $12.880 $11,040 Allowance for doubtful accounts 16.100 23.920 Merchandise inventory $2.760 $4,048 24,380 Equipment 16,928 41.400 Accumulated depreciation-equipment 26,680 Accounts payable 22.080 10,120 1. Garcia, capital 36,800 42.320 P.Lee, capital 33.120 22.080 $94,760 $94,760 $78,568 $78,568

Cash $11,960 Accounts Receivable $25,760 Merchandise Inventory $23,000 Equipment $32,200 To Garcia, Capital (for the total value of assets transferred) Prepare separate journal entries to record the transfer of each propietership assets and liabilities to the partnership on January 1