Unit 6 Assignment Question 7

Data

a

b

c

The post-dosing trial balances of two proprietorships on January 1, 2022. are presented below. Sorensen Company Lucas Company Dr. 011 Dr. Cr. Cash $11.000 $9.800 Accounts receivable 14,500 21.000 Allowance for doubtful accounts $2.500 $3.600 Inventory 21.500 15.100 37,000 24.000 Equipment Accumulated depreciation-equipment Notes payable 19.700 9.000 14.800 12.300 Accounts payable 18,000 25.400 Sorensen, capital 29,000 Lucas, capital 19,600 $84.000 $84.000 $69.900 $69.900 Sorensen and Lucas decide to form a partnership, Oriole Company with the following agreed upon valuations for noncash assets. Sorensen Company Lucas Company $14.500 $21,000 Accounts receivable Allowance for doubtful accounts 3.700 3,300 Inventory 23,000 16.400 Equipment 20,500 12,300 All cash will be transferred to the partnership, and the partnership will assume all the liabilities of the two proprietorships (5) Prepare aparate journal entries to record the transfer of each proprietorships and liabilities to the partnership (Credit account titles are automatically indented when amount is entered. Do not indent manually Date Account Titles and Explanation Debit Credit Jan 1 > > (Transfer of Sorensen's assets and liabilities.) Jan. 1 (Transfer of Lucas assets and liabilities) eTextbook and Media List of Accounts Attempts: 0 of 5used Submit (b) Further, it is agreed that Sorensen will invest an additional S4,100 in cash and Lucas will invest an additional $15,600 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