Ernie Malone and Carrie Mathus form a partnership on July 1, 201X. Malone contributes $39,500. Mathus contributes $27,500 cash and land costing $18,400 with a current fair value of $33,500. A $29,500 note payable due to Mathus is assumed by the new partnership. Please prepare the journal entries to record Malone’s and Mathus’s investment in the partnership.
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