On May 1, 2019, Stanley Carpenter and Fred Kenamond formed The Wine Shop. The two partners invested

Question:

On May 1, 2019, Stanley Carpenter and Fred Kenamond formed The Wine Shop. The two partners invested cash and other assets and liabilities with the following agreed-upon values:

Carpenter: Cash, $13,000; Merchandise inventory, $25,000; Equipment, $77,000; Accounts payable, $12,000.
Kenamond: Furniture $25,000; Cash, $37,000.

Carpenter is to own two-thirds of the capital, and Kenamond is to own one-third of the capital, but they will split profits and losses equally. Prepare a balance sheet for the partnership just after the assets and liabilities have been transferred to it.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...