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 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 |
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