Answered
Sonoma Company and Woodberry Company decide to merge their proprietorships into a partnership called Sonberry Company. The balance sheet of Woodberry Company shows: Accounts Receivable $18,000 Less: Allowance for doubtful accounts 1,500‾$16,500Equipment$20,000Less Accumulated depreciation-equip.10,000‾$10,000\begin{array}{lr}\text { Accounts Receivable } & \$ 18,000 \\\text { Less: Allowance for doubtful accounts } & \underline{1,500}&\$16,500\\\\\text {Equipment}&\$20,000\\\text {Less Accumulated depreciation-equip.}&\underline{10,000}&\$10,000\end{array} Accounts Receivable Less: Allowance for doubtful accounts EquipmentLess Accumulated depreciation-equip.$18,0001,500$20,00010,000$16,500$10,000 The partners agree that the net realizable value of the receivables is $16000 and that the fair value of the equipment is $15000.
Instructions
Indicate how the four accounts should appear in the opening balance sheet of the partnership.
On May 19, 2024