III. STRAIGHT PROBLEM. Partnership Formation

One June 30, Mateo and Cain formed a partnership. The partners agreed to invest equal amounts of capital. Mateo invested his proprietorship's assets and liabilities as follows:

Accounts Receivable 72,000 Merchandise Inventory 223,400 Prepaid Expenses 17,000 Office Equipment 459,000 Accumulated Depreciation-Equipment 153,000 Accounts Payable 191,000