| 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. |
| N withdraws from the partnership. According to the original partnership agreement, N is to receive 125% of his final capital balance, in cash. Goodwill or other asset revaluation will not be recognized. Profits and losses are shared equally by all partners. Determine the remaining partners capital balances after N withdraws. Use the space provided below for your calculations. |
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| Capital Balances | L | M | N | O | This cell intentionally left blank. |
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