The post-closing trial balances of two proprietorships on January 1, 2022, are presented below. All cash will

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The post-closing trial balances of two proprietorships on January 1, 2022, are presented below.image

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 $5,000 in cash, and Lucas will invest an additional $19,000 in cash.

Instructionsa. Prepare separate journal entries to record the transfer of each proprietorship?s assets and liabilities to the partnership.b.?Journalize the additional cash investment by each partner.c. Prepare a classifi ed balance sheet for the partnership on January 1, 2022.

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...
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Accounting Tools For Business Decision Making

ISBN: 9781119571056

7th Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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