The document outlines the formation of a partnership between Sorensen and Lucas, specifically detailing the assets and liabilities being transferred from their respective proprietorships to the new partnership, Sheridan Company. It requests the preparation of journal entries for these transactions and the creation of a classified balance sheet for the partnership as of January 1, 2022. Key considerations include the order of current assets by liquidity and the recording of all relevant liabilities and owner's equity.

1. View follices: Show Altempt Hitior Current Attempt in Pregress The post cloning triat balaners
of two propeletonties on imumy 1.2022, are presented below: Sorensen and Lucas decide to form
a partnerahle. Sheridan Companx, with the following agreed upenv Altash mill be trandered to
the part thership, and the partnentio will asume all the liabilities of the tw. Prepare separate
journal entries to record the transfer of each proprietorship's assets and liabilities to the
partnership. (Cre armuint tillec are authmatimllk indented when amaunt is entered. Da not indent
mantallvi Qe not anderrimanith etratbook and Miedia Lht af Arcouets Prepare a classified
balance sheet for the parthership on January 1, 2022. (Ust Cunent Assets in order of ilauldity) 5 5
Labilities and Owners' Equity 5