Sonoma Company and Woodberry Company decide to merge their proprietorships into a partnership called Bramble Company....

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Sonoma Company and Woodberry Company decide to merge their proprietorships into a partnership called Bramble Company. The balance sheet of Woodberry Company shows: Accounts receivable $18,200 Less: Allowance for doubtful accounts 1,450 $16,750 Equipment $24,500 Less: Accumulated depreciation-equip. 11,200 $13,300 The partners agree that the net realizable value of the receivables is $16,300 and that the fair value of the equipment is $15,100. Indicate how the four accounts should appear in the opening balance sheet of the partnership. BRAMBLE COMPANY Balance Sheet (Partial) Assets Assets BRAMBLE COMPANY Balance Sheet (Partial) Sonoma Company and Woodberry Company decide to merge their proprietorships into a partnership called Bramble Company. The balance sheet of Woodberry Company shows: Accounts receivable $18,200 Less: Allowance for doubtful accounts 1,450 $16,750 Equipment $24,500 Less: Accumulated depreciation-equip. 11,200 $13,300 The partners agree that the net realizable value of the receivables is $16,300 and that the fair value of the equipment is $15,100. Indicate how the four accounts should appear in the opening balance sheet of the partnership. BRAMBLE COMPANY Balance Sheet (Partial) Assets Assets BRAMBLE COMPANY Balance Sheet (Partial)

Answer rating: 100% (QA)

Equipment is recorded at fair value Account Receivable is recorded ... View the full answer