Question

Terry, 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, Buildings and Equipment.)

THE SUNLAND PARTNERSHIP Balance Sheet December 31, 2020 Assets Current Assets Cash 36600 > Accounts Receivable 35500 Less V Allowance for Doubtful Accounts 3300 Supplies 75400 Total Current Assets V 141700 Property, Plant and Equipment Buildings II Equipment Total Property, Plant and Equipment V Total Assets 217100 V Liabilities and Owners' Equity Long-term Liabilities V Mortgage Payable Owners' Equity Terry, Capital V Frank, Capital Nick, Capital V III IO Total Owners' Equity Total Liabilities and Owners' Equity

Answer 1

THE SUNLAND PARTNERSHIP Balance Sheet December 31,2020
	Assets
Current Assets :
Cash ( $ 30,300 + $ 6,300 )		$ 36,600
Accounts Receivable	$ 35,500
Less: Allowance for Doubtful Accounts              ( $ 35,500 (-) $ 31,900 )	($ 3,600)	$ 31,900
Supplies		$ 3,300
Total Current Assets			$ 71,800
Property, Plant and Equipment:
Land		$ 17,700
Building		$ 75,700
Equipment ( $ 25,400 + $ 22,900 )		$ 48,300
Total Property, Plant and Equipment			$ 141,700
Total Assets			$ 213,500
	Liabilities
Long-Term Liabilities :
Mortgage Payable			$ 20,500
Owners' Equity :
Terry, Capital ( $ 30,300 + $ 25,400 )		$ 55,700
Nick, Capital ( $ 17,700 + $ 75,700 (-) $ 20,500)		$ 72,900
Frank, Capital ( $ 6,300 + $ 3,300 + $ 31,900 + $ 22,900 )		$ 64,400
Total Owners' Equity			$ 193,000
Total Liabilities and Owners' Equity			$ 213,500