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Your answer is correct. Prepare separate journal entries to record the transfer of each proprietorship's assets and liabilities to the partnership. (Credit account titles are automatically inden Date Account Titles and Explanation Jan. 1 Debit Credit 17000 24500 21600 17600 39300 (Transfer of Sorensen's assets and liabilities.) Jan. 1 Lucas, Capital 22100 (Transfer of Lucas' assets and liabilities.) The post-closing trial balances of two proprietorships on January 1,2022, are presented below. Sorensen and Lucas decide to form a partnership, Crane Company, with the following agreed upon valuations for noncash assets. All cash will be transferred to the partnership, and the partnership will assume all the liabilities of the two proprietorships. Liabilities and Owners' Equity Total Liabilities and Owners' Equity cap owner Owners' Equity Sorensen, Capital Lucas, Capital Total Owners' Equity Your answer is correct. (To record Sorensen's investment.) Jan. 1 (To record Lucas' investment.) Debit Credit 4900 CRANE COMPANY Balance Sheet January 1,2022 Assets Current Assets Cash Accounts Receivable $42000 Inventory Total Current Assets Property, Plant and Equipment Equipment Total Property, Plant and Equipment Total Property, Plant and Equipment

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