Question

I need help with Part C. Any Help will be great.

Problem 12-01A a-c (Part Level Submission) (Video) The post-closing trial balances of two proprietorships on January 1, 2020, are presented below. Cr Cr. Cash Accounts recelvable Allowance for doubtful accounts $13,000 17,000 $11,500 25,000 $2,900 $4,200 25,500 43,000 17,700 28,000 Notes payable Accounts payable Sorensen, capital Lucas, capital 23,000 17,300 21,100 34,200 10,600 14,400 29,800 23,200 $98,500 $82,200 $82,200 $98,500 Sorensen and Lucas decide to form a partnership, Blossom Company, with the following agreed upon valuations for noncash assets. $17,000 4,300 26,900 24,000 $25,000 3,800 19,200 14,400 Allowance for doubtful accounts All cash will be transferred to the partnership, and the partnership will assume all the liabilities ofthe two proprietorships. Further It is agreed that sorensen wi·Invest an additional $4 800 In cash and Lucas llim est an additional $18,200 In cash.

Answer 1

Solution C:

Blossom Company
Balance Sheet
As of January 1, 2020
Particulars		Amount
Assets:
Current Assets:
Cash ($13,000 + $11,500 + $4,800 + $18,200)		$47,500.00
Accounts receivables, Gross ($17,000 + $25,000)	$42,000.00
Less: Allowance for doubtful accounts ($4,300 + $3,800)	$8,100.00
Accounts receivables, net		$33,900.00
Inventory ($26,900 + $19,200)		$46,100.00
Total Current Assets		$127,500.00
Property, Plant and Equipment:
Equipment ($24,000 + $14,400)		$38,400.00
Total Assets		$165,900.00
Liabilities and owner's equity:
Liabilities:
Accounts payable ($21,100 + $29,800)	$50,900.00
Notes Payable ($17,300 + $14,400)	$31,700.00
Total Liabilities		$82,600.00
Owner's Equity:
Sorensen, Capital ($38,200 + $4,800)	$43,000.00
Lucas, Capital ($22,100 + $18,200)	$40,300.00
Total Owner's Equity		$83,300.00
Total Liabilities and Owner's Equity		$165,900.00