Bray, Lincoln, and Mapes arranged to import and sell orchid corsages for a university dance. They agreed
Question:
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 $390 and $600 of their own respective funds to pay for advertising and other expenses. After collecting for all sales and paying creditors, the partnership has $1,590 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?
b. How should the money be distributed?
Bray | Lincoln | Mapes | Total | |
Capital balances and cash distribution | $ | $ | $ | $ |
c. Assume that the partnership has only $1,890 instead of $3,540. Do any of the three partners have a capital deficiency?
If so, how much?
Bray | Lincoln | Mapes | Total | |
Capital balances | $ | $ |
Accounting
ISBN: 978-1285743615
26th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac