Ethan Smith and Crystal Banks form a partnership on May 1, 202X. Smith contributes cash of $44,000.

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Ethan Smith and Crystal Banks form a partnership on May 1, 202X. Smith contributes cash of $44,000. Banks contributes $29,000 cash and land with a historical cost of $19,000 and a current fair value of $28,500. A $32,000 note payable due to Banks is assumed by the new partnership. Please prepare the journal entries to record Smith’s and Banks’s investment in the partnership.

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