On Mar. 1, 2018, Sarabia and Abad decided to combine their businesses and form a partnership.

Their statements of financial position on Mar. 1, before adjustments, showed the following:
Sarabia Abad
Cash 9,000 3,750
Accounts receivable 18,500 13,500
Inventories 30,000 (29,500) 19,500 (21,000)
370 270
Furniture and Fixtures (net) 30,000 (31,000) 9,000
Office Equipment (net) 11,500 2,750 (250)
Prepaid Expenses 6,375 3,000
Total 105,375 (105,875) 51,500 (50,500)
Rent Expense 1,000
Salary Expense 800

Accounts Payable 45,750 18,000

Capital 59,625 33,500 - 93,125
Total 105,375 51,500
1. BONUS 9. A 17. A 25. C 33. B
2. C 10. B 18. B 26. B 34. B
3. C 11. C 19. D 27. B 35. D
4. D 12. D 20. D 28. A
5. B 13. A 21. C 29. C
6. B 14. A 22. C 30. A
7. A 15. B 23. C 31. B
8. B 16. C 24. A 32. D