90.2K

Verified Solution

Link Copied!

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.
						This cell intentionally left blank.
						This cell intentionally left blank.
						This cell intentionally left blank.
						This cell intentionally left blank.
						This cell intentionally left blank.
						This cell intentionally left blank.
						This cell intentionally left blank.
						This cell intentionally left blank.
						This cell intentionally left blank.
						This cell intentionally left blank.
						This cell intentionally left blank.
						This cell intentionally left blank.
This cell intentionally left blank.
Capital Balances		L	M	N	O	P

Answer & Explanation Solved by verified expert

See Answer