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  3. 2. lisa holler and chaim ehrlich operate separate

2. Lisa Holler and Chaim Ehrlich operate separate jewelry stores. On January 1, 2019, they...

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2. Lisa Holler and Chaim Ehrlich operate separate jewelry stores. On January 1, 2019, they decide to combine their separate businesses which were operated as proprietorships to form L & C Jewels, a partnership. Information from their separate balance sheets is presented below: Lisa Holler Chaim Ehrlich Cash $10,000 $14,000 Accounts receivable 12,000 10,000 Allowance for doubtful accounts 1,000 500 Accounts payable 5,000 6,000 Notes payable 3,000 Salaries and wages payable 1,000 1,500 Equipment 12,000 24,000 Accumulated depreciation-equipment 2,000 4,000 It is agreed that the expected realizable value of Lisa's accounts receivable is $11,000 and Chaim's receivables is $7,000. The fair value of Lisa's equipment is $13,000 and the value of Chaim's equipment is $20,000. It is further agreed that the new partnership will assume all liabilities of the proprietorships with the exception of the notes payable on Chaim's balance sheet which he will pay himself. Instructions Prepare the journal entries necessary to record the formation of the partnership

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