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.
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Henderson's Accounts
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Value
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Cash
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$17,500
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Accounts Receivable
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7,000
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Merchandise Inventory
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10,000
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|
Equipment
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4,200
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Accounts Payable
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3,500
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Notes Payable
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3,600
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Erin agrees to invest $26,000 in cash. Record (a) Henderson's investment; (b) Erin's investment.