Question: Hello, I need some help with the following problem. Thank you. Exercise 1 Worksheet: Partnership Operations The balance sheet shown below is that of a
Hello, I need some help with the following problem. Thank you.
| Exercise 1 Worksheet: Partnership Operations | ||||||
| The balance sheet shown below is that of a partnership of attorneys. | ||||||
| Cash and current assets | $60,000 | Liabilities | $80,000 | This cell intentionally left blank. | ||
| Land | $360,000 | L, capital | $40,000 | This cell intentionally left blank. | ||
| Building and equipment (net) | $200,000 | M, capital | $80,000 | This cell intentionally left blank. | ||
| No data | No data | N, capital | $180,000 | This cell intentionally left blank. | ||
| No data | No data | O, capital | $240,000 | This cell intentionally left blank. | ||
| Totals | $620,000 | Totals | $620,000 | This cell intentionally left blank. | ||
| Calculate partnership capital balances in the situation described below. | ||||||
| Situation A: P invests $72,000 cash in the partnership to acquire a 10% interest. Goodwill will be recorded. Profits and losses were split previously, as follows: L 30%. M 10%. N 40%. O 20%. Determine the individual capital balances after Ps investment. Use the spaces provided below for your calculations. | ||||||
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| Capital Balances | L | M | N | O | P | |
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