Sonoma Company and Woodberry Company decide to merge their proprietorships into a partnership called Sonberry Company. The balance sheet of Woodberry Company shows: $\begin{array}{lr}
\text { Accounts Receivable } & \$ 18,000 \
\text { Less: Allowance for doubtful accounts } & \underline{1,500}&\$16,500\
\
\text {Equipment}&\$20,000\
\text {Less Accumulated depreciation-equip.}&\underline{10,000}&\$10,000
\end{array}$ 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.

Question

Quizplus · Accepted Answer

The Answer of Sonoma Company and Woodberry Company decide to merge their proprietorships into a partnership called Sonberry Company. The balance sheet of Woodberry Company shows: $\begin{array}{lr}
\text { Accounts Receivable } & \$ 18,000 \
\text { Less: Allowance for doubtful accounts } & \underline{1,500}&\$16,500\
\
\text {Equipment}&\$20,000\
\text {Less Accumulated depreciation-equip.}&\underline{10,000}&\$10,000
\end{array}$ 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.

Sonoma Company and Woodberry Company Decide to Merge Their Proprietorships