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? 1,260 V b. How should the money be distributed? Bray Lincoln Марes Total Capital balances and cash distribution $ 1,230 v $ 1,650 v $ 420 v 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? -300 x Bray Lincoln Марes Total Capital balances 710 1,130 -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 $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? 1,260 V b. How should the money be distributed? Bray Lincoln Марes Total Capital balances and cash distribution $ 1,230 v $ 1,650 v $ 420 v 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? -300 x Bray Lincoln Марes Total Capital balances 710 1,130 -100 V 1,740

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 5CE

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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 $900 and $1,380 of their own respective funds to pay for advertising and other expenses. After collecting for all sales and paying creditors, the partnership has $3,690 in cash. Use the minus sign to indicate any deficiency for the capital accounts. a. How much net income was earned from the venture? b. How should the $3,690 be distributed? c. Assume that the partnership has only $1,950 instead of $3,690. Complete the following table to determine if any of the three partners have a capital deficiency?
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 $225 and $300 of their own respective funds to pay for advertising and other expenses. After collecting for all sales and paying creditors, the partnership has $1,500 in cash. Use the minus sign to indicate any deficiency for the capital accounts. a. How much net income was earned from the venture?$fill in the blank 1 b. How should the $1,500 be distributed? Bray Lincoln Mapes Total Capital balances and cash distribution $ $ $ $ c. Assume that the partnership has only $300 instead of $1,500. Complete the following table to determine if any of the three partners have a capital deficiency? Bray Lincoln Mapes Total Capital balances $ $ $ $
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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 $225 and $300 of their own respective funds to pay for advertising and other expenses. After collecting for all sales and paying creditors, the partnership has $1,500 in cash.a. How much net income was earned from the venture?b. How should the $1,500 be distributed?c. Assuming that the partnership has only $300 instead of $1,500, do any of the three partners have a capital deficiency? If so, how much?
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