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?
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 blank 7 | $fill in the blank 8 | $fill in the blank 9 |
The partnership is the business type that is arranged by the partners individually in order to earn profit from the business.
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