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.