The post- closing trail balances of two proprietorships on January 1st 2014 are presented below ( in the attachment)
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 Sorensen will invest an additional $5,000 in cash, and Lucas will invest an additional $19,000 in cash.
Instructions :
(A) Prepare a separate journal entries to record the transfer of each proprietorship's assests and liabilities to the partnership.
(b) Journalize the additional cash investments by each partner.
(c) Prepare a classified balance sheet for the partnership on January 1st,2014