The post-closing trialbalances of two sole proprietorships on January 1, 2014, are presented below. James Company...

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The post-closing trialbalances of two sole proprietorships on January 1, 2014, are presented below. James Company Josh Company Account Name Dr. Cr Dr. Cr. Cash $ 14,000 $ 12,000 Accounts Receivable 17,500 26,000 Allowance for doubtful accounts $ 3,000 $ 4,400 Inventory 26,500 18,400 Equipment 45,000 29,000 Accum. Depr.- Equipment 24,000 11,000 Notes Payable 18,000 15,000 Accounts Payable 22,000 31,000 Santiago, Capital 36,000 Lucas, Capital 24,000 Totals $ 103,000 $ 103,000 $ 85,400 $ 85,400 James and Josh decide to form a partnership, JJ Company, with the following agreed upon valuations for noncash assets: James Josh Accounts Receivable $ 17,500 $ 26,000 Allowance for doubtful accounts 4,500 4,000 Inventory 28,000 20,000 Equipment 25,000 15,000 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 James will invest an additional $5,000 in cash, and Josh will invest an additional $19,000 in cash. Requirements: 1. Prepare separate journal entries 2) Journalize the additional cash investment by each partner. 3) Prepare a classified balance sheet for the partnership on January 1, 2014. The post-closing trialbalances of two sole proprietorships on January 1, 2014, are presented below. James Company Josh Company Account Name Dr. Cr Dr. Cr. Cash $ 14,000 $ 12,000 Accounts Receivable 17,500 26,000 Allowance for doubtful accounts $ 3,000 $ 4,400 Inventory 26,500 18,400 Equipment 45,000 29,000 Accum. Depr.- Equipment 24,000 11,000 Notes Payable 18,000 15,000 Accounts Payable 22,000 31,000 Santiago, Capital 36,000 Lucas, Capital 24,000 Totals $ 103,000 $ 103,000 $ 85,400 $ 85,400 James and Josh decide to form a partnership, JJ Company, with the following agreed upon valuations for noncash assets: James Josh Accounts Receivable $ 17,500 $ 26,000 Allowance for doubtful accounts 4,500 4,000 Inventory 28,000 20,000 Equipment 25,000 15,000 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 James will invest an additional $5,000 in cash, and Josh will invest an additional $19,000 in cash. Requirements: 1. Prepare separate journal entries 2) Journalize the additional cash investment by each partner. 3) Prepare a classified balance sheet for the partnership on January 1, 2014.

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i ii 2 3 Journal Entries in the Books of Partnership Firm Debit Credit Account Titles and Explanatio... View the full answer