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The post-closing trial balances of two proprietorships on January 1,2022, are presented below. Sorensen Company Lucas Company Dr. Cr. Dr. Cr. Cash $17,000 $14,400 Accounts receivable 21,000 31,000 Allowance for doubtful accounts $3,600 $5,300

The post-closing trial balances of two proprietorships on January 1,2022, are presented below. Sorensen Company Lucas Company Dr. Cr. Dr. Cr. Cash $17,000 $14,400 Accounts receivable 21,000 31,000 Allowance for doubtful accounts $3,600 $5,300

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 1PB: Consider the following situations and determine (1) which type of liability should be recognized...
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The post-closing trial balances of two proprietorships on January 1,2022, are presented below. Sorensen Company Lucas Company Dr. Cr. Dr. Cr. Cash $17,000 $14,400 Accounts receivable 21,000 31,000 Allowance for doubtful accounts $3,600 $5,300 Inventory 32,000 22,100 Equipment 54,000 35,000 Accumulated depreciation-equipment 28,800 13,200 Notes payable 21,600 18,000 Accounts payable 26,400 37,200 Sorensen, capital 43,600 Lucas, capital 28,800 $124.000 $124,000 $102,500 $102.500 Sorensen and Lucas decide to form a partnership, Blossom Company, with the following agreed upon valuations for noncash assets. Sorensen and Lucas decide to form a partnership, Blossom Company, with the following agreed upon valuations for noncash assets. Sorensen Lucas Company Company Accounts receivable $21,000 $31.000 Allowance for doubtful accounts 5,400 4,800 Inventory 33,600 24,000 Equipment 30,000 18,000 All cash will be transferred to the partnership, and the partnership will assume all the liabilities of the two proprietorships. (a) Your Answer Correct Answer Your answer is partially correct. Prepare separate journal entries to record the transfer of each proprietorship's assets and liabilities to the partnership. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Cradit Prepare separate journal entries to record the transfer of each proprietorship's assets 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 Cash 17,000 Accounts Receivable 21,000 Equipment 30,000 Inventory 33.600 Allowance for Doubtful Accounts 5,400 Accounts Payable 26,400 Notes Payable 21,600 Sorensen, Capital 48.200 (Transfer of Sorensen's assets and liabilities.) Jan. 1 Cash 14,400 Accounts Receivable 31,000
Transcribed Image Text:The post-closing trial balances of two proprietorships on January 1,2022, are presented below. Sorensen Company Lucas Company Dr. Cr. Dr. Cr. Cash $17,000 $14,400 Accounts receivable 21,000 31,000 Allowance for doubtful accounts $3,600 $5,300 Inventory 32,000 22,100 Equipment 54,000 35,000 Accumulated depreciation-equipment 28,800 13,200 Notes payable 21,600 18,000 Accounts payable 26,400 37,200 Sorensen, capital 43,600 Lucas, capital 28,800 $124.000 $124,000 $102,500 $102.500 Sorensen and Lucas decide to form a partnership, Blossom Company, with the following agreed upon valuations for noncash assets. Sorensen and Lucas decide to form a partnership, Blossom Company, with the following agreed upon valuations for noncash assets. Sorensen Lucas Company Company Accounts receivable $21,000 $31.000 Allowance for doubtful accounts 5,400 4,800 Inventory 33,600 24,000 Equipment 30,000 18,000 All cash will be transferred to the partnership, and the partnership will assume all the liabilities of the two proprietorships. (a) Your Answer Correct Answer Your answer is partially correct. Prepare separate journal entries to record the transfer of each proprietorship's assets and liabilities to the partnership. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Cradit Prepare separate journal entries to record the transfer of each proprietorship's assets 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 Cash 17,000 Accounts Receivable 21,000 Equipment 30,000 Inventory 33.600 Allowance for Doubtful Accounts 5,400 Accounts Payable 26,400 Notes Payable 21,600 Sorensen, Capital 48.200 (Transfer of Sorensen's assets and liabilities.) Jan. 1 Cash 14,400 Accounts Receivable 31,000
Further, it is agreed that Sorensen will invest an additional $6,000 in cash, and Lucas will invest an additional $22,800 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 Cash 6,000 Sorensen, Capital 6,000 (To record Sorensen's investment.) Jan 1 Cash 22.800 Lucas, Capital 22,800 (To record Lucas' investment.) Prepare a classified balance sheet for the partnership on January 1, 2022. (List Current Assets in order of liquidity.) BLOSSOM COMPANY Balance Sheet Assets Liabilities and Owners' Equity %24 %24
Transcribed Image Text:Further, it is agreed that Sorensen will invest an additional $6,000 in cash, and Lucas will invest an additional $22,800 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 Cash 6,000 Sorensen, Capital 6,000 (To record Sorensen's investment.) Jan 1 Cash 22.800 Lucas, Capital 22,800 (To record Lucas' investment.) Prepare a classified balance sheet for the partnership on January 1, 2022. (List Current Assets in order of liquidity.) BLOSSOM COMPANY Balance Sheet Assets Liabilities and Owners' Equity %24 %24
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