P12.4A (LO 3, 4) AP Veda Storey and Gordon Rogers have a partnership agreement with the following provisions for sharing profit or loss: 1. A salary allowance of $30,900 to Storey and $39,700 to Rogers 2. An interest allowance of 5% on capital balances at the beginning of the year 3. The remainder to be divided between Storey and Rogers on a 2:3 basis The capital balances on January 1, 2024, for Storey and Rogers were $82,000 and $101,000, respectively. For the year ended December 31, 2024, the Storey Rogers Partnership had sales of $340,000; cost of goods sold of $250,000; operating expenses of $130,000; V. Storey drawings of $24,000; and G. Rogers drawings of $28,800. Instructions a. Prepare an income statement for Storey Rogers Partnership for the year. b. Prepare a schedule to show how the profit or loss will be allocated to the two partners. c. Prepare a statement of partners' equity for the year. d. Prepare closing entries at December 31.

P12.4A (LO 3, 4) AP Veda Storey and Gordon Rogers have a partnership agreement with the following provisions for sharing profit or loss: 1. A salary allowance of $30,900 to Storey and $39,700 to Rogers 2. An interest allowance of 5% on capital balances at the beginning of the year 3. The remainder to be divided between Storey and Rogers on a 2:3 basis The capital balances on January 1, 2024, for Storey and Rogers were $82,000 and $101,000, respectively. For the year ended December 31, 2024, the Storey Rogers Partnership had sales of $340,000; cost of goods sold of $250,000; operating expenses of $130,000; V. Storey drawings of $24,000; and G. Rogers drawings of $28,800. Instructions a. Prepare an income statement for Storey Rogers Partnership for the year. b. Prepare a schedule to show how the profit or loss will be allocated to the two partners. c. Prepare a statement of partners' equity for the year. d. Prepare closing entries at December 31.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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