C. Held and G. Kamp decide to merge their proprietorships into a partnership called Heldkamp Company. The balance sheet of Kamp Co. shows:
|
Accounts receivable |
$16,000 |
|
|
Less: Allowance for doubtful accounts |
1,200 |
$14,800 |
|
Equipment |
20,000 |
|
|
Less: Accumulated depreciation |
8,000 |
12,000 |
The partners agree that the net realizable value of the receivables is $12,500 and that the fair value of the equipment is $10,000. Indicate how the four accounts should appear in the opening balance sheet of the partnership.