On January 1, 2016, Chris Hunts and Carol Lo formed the Chris and Carol Partnership by investing the following assets and liabilities in the business:

An independent appraiser believes that Chris's equipment has a market value of $29,000 and Carol's equipment has a market value of $47,500. The appraiser indicates Chris's building has a current value of $90,000 and Carol's building has a current value of $110,000. The appraiser further indicates that Chris's land has a current value of $78,000 and Carol's land has a current value of $80,000. Chris and Carol agree to share profits and losses in a 60:40 ratio. During the first year of operations, the business net income is $74,000. Each partner withdrew $30,000 cash.
Required
1. Prepare the journal entries to record the initial investments in the business by Chris and Carol.
2. Prepare a balance sheet dated January 1, 2016, after the completion of the initial journal entries.

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Chris's Book value Carol's Book valu $12,000 38,000 8,200 84,000 25,000 60,000 35,000 17,000 $18,500 53,500 9,900 95,000 35,000 66,000 35,000 28,000 Equipment Accumulated amort.-equiment Buildings Accumulated amort.-buildings Accounts pavable Note payable