1. Moe, Larry, and Curly are forming The Stooges Partnership. Moe is transferring $30,000 of personal cash and equipment worth $25,000 to the partnership. Larry owns land worth $18,000 and a small building worth $75,000, which he transfers to the partnership. There is a long-term mortgage of $20,000 on the land and building, which the partnership assumes. Curly transfers' cash of $7,000, accounts receivable of $36,000, supplies worth $3,000, and equipment worth $22,000 to the partnership. The partnership expects to collect $32,000 of the accounts receivable.
Instructions
Prepare a classified balance sheet for the partnership after the partners' investments on
December 31, 2010.