P12_1A

1,Prepare separate journal entries to record the transfer of each proprietorship's assets and liabilities to the partnership.

Journal entry for Sorensen proprietorship's asset and liabilities

date
Jan.01 Cash
Accounts Receivable
Allowance for doubtful accounts
Inventory
Equipment
Notes payable
Accounts payable
Sorensen, capital

Journal entry for Lucas proprietorship's asset and liabilities

date
Jan.01 Cash
Accounts Receivable
Allowance for doubtful accounts
Inventory
Equipment
Notes payable
Accounts payable
Lucas, capital

2,Journalize the additional cash investment by each partner.

date
Cash
Jan.01 Sorensen, capital

date
Cash
Jan.01 Lucas, capital
3, Prepare a classified balance sheet for the partnership on January 1, 2017.

debit credit
Cash $ 50,000
Accounts receivable $ 43,500
Less: Allowance for doubtful accounts $ 8,500 $ 35,000
Inventory $ 48,000
Equipment $ 40,000
Total assets $ 173,000
Liabilities and Owner's Equity
Liabilities
Notes payable $ 33,000
Accounts payable $ 53,000
Total liabilities $ 86,000
Owner's Equity
Sorenen, Capital $ 45,000
Lucas, Capital $ 42,000
Total Owner's Equity $ 87,000
Total Liabilities and Owner's Equity $ 173,000
lities to the partnership.

Debit Credit
$ 14,000
$ 17,500
$ 4,500
$ 28,000
$ 25,000
$ 18,000
$ 22,000
$ 40,000

Debit Credit
$ 12,000
$ 26,000
$ 4,000
$ 20,000
$ 15,000
$ 15,000
$ 31,000
$ 23,000

Debit Credit
$ 5,000
$ 5,000

Debit Credit
$ 19,000
$ 19,000