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 $330 and $510 of their own respective funds to pay for advertising and other expenses. After collecting for all sales and paying creditors, the partnership has $1,350 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 $1,350 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 $720 instead of $1,350. 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
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 $330 and $510 of their own respective funds to pay for advertising and other expenses. After collecting for all sales and paying creditors, the partnership has $1,350 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 $1,350 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 $720 instead of $1,350. 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
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 $330 and $510 of their own respective funds to pay for advertising and other expenses. After collecting for all sales and paying creditors, the
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 $1,350 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 $720 instead of $1,350. 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 |
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