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Henderson and Erin have decided to form a partnership. Henderson invests the following assets (shown at their agreed upon value) and he also transfers liabilities to the new firm.
Henderson's Accounts
Value
Cash
$17,500
Accounts Receivable
7,000
Merchandise Inventory
10,000
Equipment
4,200
Accounts Payable
3,500
Notes Payable
3,600
Erin agrees to invest $26,000 in cash. Record (a) Henderson's investment; (b) Erin's investment.
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