Question

Exercise 19.3 Preparing a balance sheet for a partnership. LO 19-3 On May 1, 2019, Stanley Carpenter and Fred Kenamond formed The Wine Shop. The two partners invested cash and other assets and liabilities with the following agreed-upon values: points DOOR Carpenter Cash, $12.100; Merchandise inventory. $24100, Equipment, $76,100; Accounts payable, $10,200. Kenamond: Furniture, $24,100; Cash, $36,100. Carpenter is to own two-thirds of the capital, and kenamond is to own one-third of the capital, but they will split profits and losses equally References Prepare a balance sheet for the partnership just after the assets and liabilities have been transferred to it THE WINE SHOP Balance Sheet May 1, 2019 Assets Merchandise inventory 49,200 Cash 76,100 Equipment 24.100 Furniture $ 172,500 Total Assets

Answer 1

Computation of Capital accounts Total Assets less: Accounts Payable Capital Carpenter's share ($162,300 x 2/3) Kenamond's share( $162,300 x 1/3) $ 1,72,500 $ 10,200 $ 1,62,300 $ 1,08,200 $ 54,100 The Wine Shop Balance sheet May 1, 2019 Assets Merchandise Inventory Cash ($12,100 + $36,100) Equipment Furniture Amount $ 24,100 $ 48,200 $ 76,100 $ 24,100 Total Assets $ 1,72,500 Liabilities Capitals Carpenter Kenamond $ $ 1,08,200 54,100 Accounts Payable $ 10,200 Total Liabilities $ 1,72,500

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