Santo Company and Renfro Company decide to merge their proprietorships into a partnership called Crestwood Company. The balance sheet of Renfro Company shows:
The partners agree that the net realizable value of the receivables is $12,500 and that the fair market value of the equipment is $15,000.
Instructions
Indicate how the four accounts should appear in the opening balance sheet of the partnership.

Question

Santo Company and Renfro Company decide to merge their proprietorships into a partnership called Crestwood Company. The balance sheet of Renfro Company shows:  
The partners agree that the net realizable value of the receivables is $12,500 and that the fair market value of the equipment is $15,000.
Instructions
Indicate how the four accounts should appear in the opening balance sheet of the partnership.

Quizplus · Accepted Answer

The Answer of Santo Company and Renfro Company decide to merge their proprietorships into a partnership called Crestwood Company. The balance sheet of Renfro Company shows:  
The partners agree that the net realizable value of the receivables is $12,500 and that the fair market value of the equipment is $15,000.
Instructions
Indicate how the four accounts should appear in the opening balance sheet of the partnership.

Santo Company and Renfro Company Decide to Merge Their Proprietorships