close solutoin list

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 $225 and $500 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?

BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

Solutions

Chapter
Section
Chapter 12, Problem 12.21EX
Textbook Problem

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 $225 and $500 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.

  1. a. How much net income was earned from the venture?
  2. b. How should the $1,500 be distributed?
  3. 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?

Expert Solution

Want to see this answer and more?

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

See solution

Chapter 12 Solutions

Accounting
Show all chapter solutions
Ch. 12 - Journalizing partners original investment Holly...Ch. 12 - Journalizing partners original investment Austin...Ch. 12 - Dividing partnership net income Lia Chen and...Ch. 12 - Dividing partnership net income John Prado and...Ch. 12 - Revaluing and contributing assets to a partnership...Ch. 12 - Revaluing and contributing assets to a partnership...Ch. 12 - Partner bonus Gomez, has a capital balance of...Ch. 12 - Partner bonus Hiro has a capital balance of 75,000...Ch. 12 - Liquidating partnerships Prior to liquidating...Ch. 12 - Liquidating partnerships Prior to liquidating...Ch. 12 - Liquidating partnershipsdeficiency Prior to...Ch. 12 - Liquidating partnershipsdeficiency Prior to...Ch. 12 - Revenue per employee Niles and Cohen, CPAs earned ...Ch. 12 - Revenue per employee Eclipse Architects earned...Ch. 12 - Recording partner's original investment Kimberly...Ch. 12 - Recording partner's original investment Hannah...Ch. 12 - Dividing partnership income Tyler Hawes and Piper...Ch. 12 - Dividing partnership income Using each of the live...Ch. 12 - Dividing partnership net loss Leigh Meadows and...Ch. 12 - Negotiating income-sharing ratio Sixty-year-old...Ch. 12 - Dividing LLC income Martin Farley and Ashley Clark...Ch. 12 - LLC net income and statement of members equity...Ch. 12 - Admitting new partners Myles Eller and Crystal...Ch. 12 - Admitting new partners who buy an interest and...Ch. 12 - Admitting new partner who contributes assets After...Ch. 12 - Admitting new partner with bonus Cody Jenkins and...Ch. 12 - Admitting a new LLC member with bonus Alert...Ch. 12 - Admitting new partner with bonus L. Bowers and V....Ch. 12 - Partner bonuses, statement of partnership equity...Ch. 12 - Withdrawal of partner Lane Stevens is to retire...Ch. 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 - Distribution of cash upon liquidation Bray,...Ch. 12 - Liquidating partnershipscapital deficiency...Ch. 12 - Statement of partnership liquidation After closing...Ch. 12 - Statement of LLC liquidation Lester, Torres, and...Ch. 12 - Partnership entries and statement of partnership...Ch. 12 - Revenue per professional staff The accounting firm...Ch. 12 - Revenue per employee Superior Cleaning Services,...Ch. 12 - Entries and balance sheet for partnership On March...Ch. 12 - Dividing partnership income Morrison and Greene...Ch. 12 - Financial statements for partnership The ledger of...Ch. 12 - Admitting new partner Musa Moshref and Shaniqua...Ch. 12 - Statement of partnership liquidation After the...Ch. 12 - Statement of partnership liquidation On November...Ch. 12 - Entries and balance sheet for partnership On April...Ch. 12 - Dividing partnership income Dylan Howell and...Ch. 12 - Financial statements for partnerships The ledger...Ch. 12 - Admitting new partner Brian Caldwell and Adriana...Ch. 12 - Statement of partnership liquidation After the...Ch. 12 - Statement of partnership liquidation On August 3,...Ch. 12 - Ethics in Action Tayc Barrow, M.D., and James...Ch. 12 - Communication Lindsey Wilson has agreed to invest...Ch. 12 - Dividing partnership income Terry Willard and...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions
What equations describes the income statement?

Cornerstones of Financial Accounting

Explain the major stages of team development.

Foundations of Business (MindTap Course List)

It is frequently stated that the one purpose of the preemptive right is to allow individuals to maintain their ...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

What is the accounting rate of return?

Cornerstones of Cost Management (Cornerstones Series)