The post-closing trial balances of two proprietorships on January 1, 2012, are presented below.

Williams and Jones decide to form a partnership, Wijo Company, with the following agreed upon valuations for non-cash assets.

All cash will be transferred to the partnership, and the partnership will assume all the liabilities of the two proprietorships. Further, it is agreed that Williams will invest an additional $5,000 in cash, and Jones will invest an additional $19,000 in cash.Instructions(a) Prepare separate journal entries to record the transfer of each proprietorship??s assets and liabilities to the partnership.(b) Journalize the additional cash investment by each partner.(c) Prepare a classified balance sheet for the partnership on January 1,2012.

Transcribed Image Text:

Williams Company Jones Company Dr. Cг. Dr. Cr. $ 14.000 $12.000 Cash Accounts receivable 17,500 26,000 $ 3,000 $ 4,400 Allowance for doubtful accounts 26,500 45,000 Inventory Equipment Accumulated depreciation-equipment Notes payable Accounts payable Williams, capital Jones, capital 18.400 29,000 24,000 11,000 18,000 15,000 22.000 31,000 36,000 24,000 $103,000 $103.000 $85.400 $85.400