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David, Matt, and Chris are forming The Doctor Partnership.
David is transferring $30,000 of personal cash and equipment
worth $25,000 to the partnership. Matt owns land worth $18,000
and a small building worth $75,000, which he transfers to the
partnership. There is a long-term mortgage of $20,000 on the
land and building, which the partnership assumes. Chris
transfers cash of $7,000, accounts receivable of $36,000,
supplies worth $3,000, and equipment worth $22,000 to the
partnership. The partnership expects to collect $32,000 of the
accounts receivable. Prepare a classified balance sheet for the
partnership after the partners’ investments on December 31,
2012.

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  • 1. David, Matt, and Chris are forming The Doctor Partnership. David is transferring $30,000 of personal cash and equipment worth $25,000 to the partnership. Matt owns land worth $18,000 and a small building worth $75,000, which he transfers to the partnership. There is a long-term mortgage of $20,000 on the land and building, which the partnership assumes. Chris transfers cash of $7,000, accounts receivable of $36,000, supplies worth $3,000, and equipment worth $22,000 to the partnership. The partnership expects to collect $32,000 of the accounts receivable. Prepare a classified balance sheet for the partnership after the partners’ investments on December 31, 2012.