Michael Lee has been running Lee Management Consulting as a proprietorship but is planning to expand operations in the near future. The revised Lee Management Consulting July 31, 2016, balance sheet appears on the next page, with all amounts adjusted to current market values so they can be used for the start of a partnership. Michael Lee is considering forming a partnership with Jill Monroe, who provides the market value financial information shown on the next page. Create the Lee and Monroe Consulting partnership balance sheet at July 31, 2016, assuming there are no payables or receivables between Lee and Monroe.

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Lee Management Consulting Monroe's Business Assets $21,650 5,900 2,713 100 $100,000 50,000 5,000 1,000 Accounts receivable Inventory Supplies Prepaid rent Equipment Accumulated amortization-equipment Furniture Accumulated amortization-furniture Total assets Liabilities and Equity Accounts payable 1,000 10,000 (100) 4,000 5,000 $42,021 $169,000 $9,600 1,000 1,200 $20,000 0 Unearned service revenue Notes payable Michael Lee, capital Jill Monroe, capital Total liabilities and equity 50,000 30,221 99,000 $169,000 $42,021