The post-closing trial balances of two proprietorships on January 1, 2017, are presented below.

Sorensen and Lucas decide to form a partnership, Solu Company, with the following agreed upon valuations for noncash 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 Sorensen will invest an additional $5,000 in cash, and Lucas 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 1,2017.

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Sorensen Compan Lucas Company Cr Dr. $12,000 26,000 Cr. Cash Accounts receivable Allowance for doubtful accounts Inventory Equipment Accumulated depreciation-equipment Notes payable Accounts payable Sorensen, capital Lucas, capital 14,000 17,500 3,000 4,400 26,500 45,000 18,400 29,000 2 24,000 18,000 22,000 36,000 11,000 15,000 31,000 24,000 $103,000 $103,000 85,400 $85,400 Accounts receivable Allowance for doubtful accounts Inventony Equipment Sorensen Company $17,500 4,500 28,000 25,000 Lucas Company $26,000 4,000 20,000 15,000