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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![**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?**
- **Net Income:** $1,260
b. **How should the money be distributed?**
| | Bray | Lincoln | Mapes | Total |
|---------------|---------|---------|--------|--------|
| Capital balances and cash distribution | $1,230 | $1,650 | $420 | $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?**
- **Answer:** Yes
**If so, how much?**
- **Deficiency Amount:** -$300
| | Bray | Lincoln | Mapes | Total |
|---------------|-------|---------|--------|--------|
| Capital balances | $710 | $1,130 | -$100 | $1,740 |](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe0dca215-93ee-488d-9b4c-cdadeecd5be1%2Fb9dfab3d-03d8-4a8e-a847-243002852ce8%2Fte1zkdp_processed.png&w=3840&q=75)
Transcribed Image Text:**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?**
- **Net Income:** $1,260
b. **How should the money be distributed?**
| | Bray | Lincoln | Mapes | Total |
|---------------|---------|---------|--------|--------|
| Capital balances and cash distribution | $1,230 | $1,650 | $420 | $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?**
- **Answer:** Yes
**If so, how much?**
- **Deficiency Amount:** -$300
| | Bray | Lincoln | Mapes | Total |
|---------------|-------|---------|--------|--------|
| Capital balances | $710 | $1,130 | -$100 | $1,740 |
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