The post-closing trial balances of two proprietorships on January 1, 2020, are presented below (amounts in thousands).

Bon-Joon and Joon-Ho decide to form a partnership, BJH Company, with the following agreed upon valuations for non-cash assets.

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 Bon-Joon will invest an additional W5,000 in cash, and Joon-Ho will invest an additional W19,000 in cash.

Instructions
a. 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 classified statement of financial position for the partnership on January 1, 2020.

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Bon-Joon Company Joon-Ho Company Cr. Dr. Dr. Cr. # 14,000 W12,000 Cash Accounts receivable 17,500 26,000 # 3,000 Allowance for doubtful accounts W 4,400 26,500 Inventory Equipment Accumulated depreciation-equipment Notes payable Accounts payable Bon-Joon, capital Joon-Ho, capital 18,400 29,000 45,000 24,000 11,000 18,000 15,000 31,000 22,000 36,000 24,000 #103,000 #103,000 W85,400 W85,400 Bon-Joon and Joon-Ho decide to form a partnership, BJH Company, with the following agreed upon valuations for non-cash assets. Bon-Joon Company Joon-Ho Company W17,500 Accounts receivable W26,000 4,000 Allowance for doubtful accounts 4,500 28,000 Inventory Equipment 20,000 25,000 15,000 Bon-Joon Company Joon-Ho Company Accounts receivable Allowance for doubtful accounts Inventory Equipment W17,500 W26,000 4,000 4,500 28,000 20,000 25,000 15,000