Question

CALCULATOR FULL SCREEN PRINTER VERSION BACK Y. Nick, and Frank are forming The Sunland Partnership. Terry is transferring $30,300 of personal cash and equipment worth $25,400 to the partnership. Nick owns land worth $17,700 and a small building worth $75,700, which he transfers to the partnership. There is a long-term mortgage of $20,500 on the land and building, which the partnership assumes. Frank transfers cash of $6,300, accounts receivable of $35,500, supplies worth $3,300, and equipment worth $22,900 to the partnership. The partnership expects to collect $31,900 of the accounts receivable. Prepare a classified balance sheet for the partnership after the partners investments on December 31, 2020. (List current assets in order of liquidity. List Property, plant and Equipment in order of land, Badings and Equipment.) THE SUNLAND PARTNERSHIP Balance Sheet

Answer 1

The Sunland Partnership
Balance sheet
31 December 2020
Assets		2020
Current Assets
	Cash	36,600
	Accounts receivable	35,500
	Inventory	3,300
	Total current assets	$      75,400
Fixed (Long-Term) Assets
	Property, plant, and equipment	141,700
	(Less accumulated depreciation)	-
	Intangible assets	-
	Total fixed assets	$     141,700
Other Assets
	Other	-
	Total Other Assets	$               -
Total Assets		$ 217,100
Liabilities and Owner's Equity
Current Liabilities
	Accounts payable	-
	Provisions for bad debts	3,600
	Total current liabilities	$        3,600
Long-Term Liabilities
	Long-term debt	20,500
	Other
	Total long-term liabilities	$      20,500
Owner's Equity
	Owner's investment	193,000
	Other	-
	Total owner's equity	$     193,000
Total Liabilities and Owner's Equity		$ 217,100