The post-closing trial balances of two proprietorships on January 1, 2017, are presented below. Sorensen Company Lucas Company Dr. Cr. Dr. Cr.Cash $17,000 $14,600 Accounts receivable 21,500 32,000 Allowance for doubtful accounts $3

eliaaxeqhc13

Main

Home >Homework Answsers >Business & Finance homework help >Accounting homework help

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

	Sorensen Company		Lucas Company
	Dr.	Cr.	Dr.	Cr.
Cash	$17,000		$14,600
Accounts receivable	21,500		32,000
Allowance for doubtful accounts		$3,700		$5,400
Inventory	32,500		22,400
Equipment	55,000		35,000
Accumulated depreciation—equipment		29,300		13,400
Notes payable		22,000		18,300
Accounts payable		26,800		37,800
Sorensen, capital		44,200
Lucas, capital				29,100
	$126,000	$126,000	$104,000	$104,000

Sorensen and Lucas decide to form a partnership, Solu Company, with the following agreed upon valuations for noncash assets.

	Sorensen Company	Lucas Company
Accounts receivable	$21,500	$32,000
Allowance for doubtful accounts	5,500	4,900
Inventory	34,200	24,400
Equipment	30,500	18,300

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 $6,100 in cash, and Lucas will invest an additional $23,200 in cash.

9 years ago
999999.99

Answer(1)

Purchase the answer to view it

NOT RATED

accounting_solutions.doc

9 years ago

Bids(0)

other Questions(10)