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 $780 and $1,200 of their own respective funds to pay for advertising and other expenses. After collecting for all sales and paying creditors, the partnership has $3,210 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 $3,210 be distributed?
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 $780 and $1,200 of their own respective funds to pay for advertising and other expenses. After collecting for all sales and paying creditors, the
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 $3,210 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 $1,710 instead of $3,210. 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 |
The partnership is the business type that is arranged by the partners individually in order to earn profit from the business.
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