It creates a transaction that has 2 inputs. One input is the transaction output that assigned 1.0 BTC to 1HSDRZYfcenZBNCZjk4y5wyxzPc79a6y33, the other input is the transaction output that assigned 1.0 BTC to 12Ui8b9q6eqhTxZkow8H7VHbZafEnsPDs3.
Thank you! I think this is the step I was missing. I didn't realize it was publicly announcing how it was funding the transaction. I wanted to make sure we weren't relying on the client application to be telling the truth