Financial Accounting
15th Edition
ISBN: 9781337272124
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter 12, Problem 21E
a.
To determine
Determine the net income earned from the venture.
b.
To determine
Determine the division of $1,500 among the partners.
c.
To determine
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 $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…
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
Chapter 12 Solutions
Financial Accounting
Ch. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQ
Ch. 12 - Prob. 1PEACh. 12 - Prob. 1PEBCh. 12 - Prob. 2PEACh. 12 - Prob. 2PEBCh. 12 - Prob. 3PEACh. 12 - Prob. 3PEBCh. 12 - Prob. 4PEACh. 12 - Prob. 4PEBCh. 12 - Prob. 5PEACh. 12 - Liquidating partnerships Prior to liquidating...Ch. 12 - Prob. 6PEACh. 12 - Prob. 6PEBCh. 12 - Revenue per employee Niles and Cohen, CPAs earned...Ch. 12 - Prob. 7PEBCh. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - Prob. 11ECh. 12 - Prob. 12ECh. 12 - Prob. 13ECh. 12 - Prob. 14ECh. 12 - Prob. 15ECh. 12 - Prob. 16ECh. 12 - Statement of members equity, admitting new member...Ch. 12 - Distribution of cash upon liquidation Hewitt and...Ch. 12 - Distribution of cash upon liquidation David Oliver...Ch. 12 - Liquidating partnershipscapital deficiency Lewis,...Ch. 12 - Prob. 21ECh. 12 - Prob. 22ECh. 12 - Statement of partnership liquidation After closing...Ch. 12 - Prob. 24ECh. 12 - Prob. 25ECh. 12 - Revenue per professional staff The accounting firm...Ch. 12 - Prob. 27ECh. 12 - Prob. 1PACh. 12 - Prob. 2PACh. 12 - Prob. 3PACh. 12 - Prob. 4PACh. 12 - Statement of partnership liquidation After the...Ch. 12 - Prob. 6PACh. 12 - Prob. 1PBCh. 12 - Prob. 2PBCh. 12 - Prob. 3PBCh. 12 - Prob. 4PBCh. 12 - Statement of partnership liquidation After the...Ch. 12 - On August 3, the firm of Chapelle, Rock, and Pryor...Ch. 12 - Prob. 1CPCh. 12 - Prob. 3CPCh. 12 - Prob. 4CP
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