Distribution of Cash Upon LiquidationBray, Lincoln, and Mapes arranged to import and sell orchid corsages for a university dance. They agreed to share equally the net income or net loss of the venture. Bray and Lincoln advanced $660 and $990 of their own respective fundsto pay for advertising and other expenses. After collecting for all sales and paying creditors, the partnership has $2,670 in cash.Use the minus sign to indicate any deficiency for the capital accounts.For those boxes in which you must enter subtractive or negative numbers usea. How much net income was earned from the venture?1,020 ✔b. How should the money be distributed?Capital balances and cash distributionIf so, how much?Capital balancesFeedback▼ Check My WorkBrayBray660 X $660 XLincolnc. Assume that the partnership has only $1,410 instead of $2,670. Do any of the three partners have a capital deficiency?Yes -✓Lincoln660 X $990 Xminus sign.Mapes340MapesTotal660 XTotal630 Xa. Allocate equally the remaining cash adjusted for the advanced amounts as distributed net income to the partners. The original investments adjusted for the net income determines the capital for each partner.b. When remaining cash is less than cash advanced, a loss occurs. Allocate this difference equally as the net loss to the partners. The original investments adjusted for the net loss determines the capital for each partner. Are anyof these capital balances negative?

It is an agreement between two or more parties to conduct the business and share the profits and…

Bray, Lincoln, and Mapes arranged to import and sell orchid corsages for a university dance. They agreed to share equally the net income or net loss of the venture. Bray and Lincoln advanced $660 and $990 of their own respective to pay for advertising and other expenses. After collecting for all sales and paying creditors, the partnership has $2,670 in cash. Use the minus sign to indicate any deficiency for the capital accounts. For those boxes in which you must enter subtractive or negative numbers use a. How much net income was earned from the venture? 1,020 ✓ minus sign.

Bray, Lincoln, and Mapes arranged to import and sell orchid corsages for a university dance. They agreed to share equally the net income or net loss of the venture. Bray and Lincoln advanced $660 and $990 of their own respective to pay for advertising and other expenses. After collecting for all sales and paying creditors, the partnership has $2,670 in cash. Use the minus sign to indicate any deficiency for the capital accounts. For those boxes in which you must enter subtractive or negative numbers use a. How much net income was earned from the venture? 1,020 ✓ minus sign.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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