Partnership It is that form of organization which is owned and managed by two or more persons who invest and share the profits and losses according to a pre-determined ratio. Liquidating Partnership The winding up of process of partnership is called liquidation of partnership. At the time of liquidation of partnership realization of account is prepared. The net income earned from the venture.

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 $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…

Answer 1

Question

Chapter 12, Problem 12.21EX

a.

To determine

Partnership

It is that form of organization which is owned and managed by two or more persons who invest and share the profits and losses according to a pre-determined ratio.

Liquidating Partnership

The winding up of process of partnership is called liquidation of partnership. At the time of liquidation of partnership realization of account is prepared.

The net income earned from the venture.

b.

To determine

The division of $1,500 among the partners.

c.

To determine

If the partnership has $300 instead of $1,500, then will any partner have a capital deficiency and by how much?

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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…

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 1,260 V b. How should the money be distributed? Bray Lincoln Маpes Total Capital balances and cash distribution $ 1,230 1,650 V $ 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? Yes If so, how much? $1 -300 x Bray Lincoln Mapes Total Capital balances 710 V 1,130 V -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 $660 and $990 of their own respective funds to pay for advertising and other expenses. After collecting for all sales and paying creditors, the partnership has $2,670 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. How much net income was earned from the venture? 1,020 ✔ b. How should the money be distributed? Capital balances and cash distribution If so, how much? Capital balances Feedback ▼ Check My Work Bray Bray 660 X $ 660 X Lincoln c. Assume that the partnership has only $1,410 instead of $2,670. Do any of the three partners have a capital deficiency? Yes -✓ Lincoln 660 X $ 990 X minus sign. Mapes 340 Mapes Total 660 X Total 630 X a. Allocate…