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