This is all one question. Please help me. Thank you
Cookie Creations 12 Natalie's high school friend, Katy Peterson, has been operating a bakery for approximately 18 months. Because Natalie has been so successful operating Continuing Cookie Chronicle, Katy would like to have Natalie become her partner, Katy believes that together they will create a thriving cookie-making business. Natalie is quite happy with her current business set up. Until now, she had not considered joining forces with anyone. However, Natalie thinks that it may be a good idea to establish a partnership with Katy, and decides to look into it. From past meetings with Katy, Natalie has gathered the following information about Katy's business and compared it to her own results. The current market values of the assets and liabilities of both businesses are as follow. The Baker's Nook Continuing Cookie Chronicle Cash $1,500 Accounts receivable 6,000 Allowance for doubtful accounts (750) Inventory 1,200 Equipment 7,500 1,000 Notes Payable (bank loan) 10,000 900 All assets would be transferred into the partnership. The partnership would assume all of the abilities of the two proprietorships. The bank loan (notes payable) is due February 17, 2018 Additional information: Katy operates her business from leased premises. She has just signed a lease for 12 months. Monthly rent will be $1,000. Katy's landlord has agreed to draw up a new lease agreement that would be signed by both partners Katy graduated from cooking school. She has no personal assets and a lot of student loans and credit card debt. Natalie's personal assets consist of investments in personal U.S. Savings Bonds. Natalie has no personal liabities. Katy is reluctant to have a partnership agreement drawn up. She thinks it's a waste of both time and money. As Katy and Natalie have been friends for a long time. Katy is confident that any problems that arise can be easily resolved over a nice meal that any problems that arise can be easily resolved over a nice meal. Natalie thinks that it may be a good idea to establish a partnership with Katy. She comes to you with the following questions 1 W a ke to have aty contribute the same amount of capital as I am contributing How much donar cash borrow to invest in the partnerships that she and I have the same captal balance odation to the amount in Katy's proprietors would Katy have to Katy have to borrow Assume that Natalie and Katy go ahead and form a partnership called Continuing Cookie Chronicle and More on November 1, 2017, and that Katy is able to borrow the additional cash she need to contribute to the partnership Prepare a balance sheet for the partnership on November 1. (List current assets in order of liquidity.) Continuing Colle Chronicle AND MORE Continuing Cookie Chronicle AND MORE Balance Sheet Assets Liabilities and Owners' Equity
