Distribution of Cash Upon Liquidation 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 $810 and $1,230 of their own respective funds to pay for advertising and other expenses. After collecting for all sales and paying creditors, the partnership has $3,300 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 minus sign. a. How much net income was earned from the venture? 1,260 V b. How should the money be distributed? Bray Lincoln Марes Total Capital balances and cash distribution $ 1,230 v $ 1,650 v $ 420 v 3,300 c. Assume that the partnership has only $1,740 instead of $3,300. Do any of the three partners have a capital deficiency? Yes If so, how much? -300 x Bray Lincoln Марes Total Capital balances 710 1,130 -100 V 1,740

Distribution of Cash Upon Liquidation 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 $810 and $1,230 of their own respective funds to pay for advertising and other expenses. After collecting for all sales and paying creditors, the partnership has $3,300 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 minus sign. a. How much net income was earned from the venture? 1,260 V b. How should the money be distributed? Bray Lincoln Марes Total Capital balances and cash distribution $ 1,230 v $ 1,650 v $ 420 v 3,300 c. Assume that the partnership has only $1,740 instead of $3,300. Do any of the three partners have a capital deficiency? Yes If so, how much? -300 x Bray Lincoln Марes Total Capital balances 710 1,130 -100 V 1,740

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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Distribution of Cash Upon Liquidation 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 $780 and $1,200 of their own respective funds to pay for advertising and other expenses. After collecting for all sales and paying creditors, the partnership has $3,210 in cash. Use the minus sign to indicate any deficiency for the capital accounts. a. How much net income was earned from the venture?$fill in the blank 1 b. How should the $3,210 be distributed? Bray Lincoln Mapes Total Capital balances and cash distribution $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 $fill in the blank 5 c. Assume that the partnership has only $1,710 instead of $3,210. Complete the following table to determine if any of the three partners have a capital deficiency? Bray Lincoln Mapes Total Capital balances $fill in the blank 6 $fill in the…
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