Bianca Houston, Jana Alsup, and KeKe Cross 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. Houston and Alsup advanced $870 and $1,320 of their own respective funds to pay for advertising and other expenses. After collecting for all sales and paying creditors, the partnership has $3,540 in cash.

Use the minus sign to indicate any deficiency for the capital accounts.

a. How should the money be distributed?

	Houston	Alsup	Cross	Total
Capital balances and cash distribution	$	$	$	$

b. Assume that the partnership has only $1,890 instead of $3,540. Do any of the three partners have a capital deficiency? Yes or No ?

If so, how much? $

	Houston	Alsup	Cross	Total
Capital balances