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Prepare a schedule that shows the division of profit to each partner. (

Prepare a schedule that shows the division of profit to each partner. (

FINANCIAL ACCOUNTING
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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The condensed, adjusted trial balance of the David and Richard Partnership as at December 31, 2024, appears below: DAVID AND RICHARD PARTNERSHIP Adjusted Trial Balance December 31, 2024 Current assets Equipment Accounts payable Long-term debt. David, capital David, drawings Richard, capital Richard, drawings Service revenue Operating expenses Debit $31,000 89,000 276,000 251,000 74,000 $721,000 Credit $13,000 50,000 32,000 24,000 602,000 $721,000 The partnership agreement stipulates that a division of partnership profit or loss is to be made as follows:
Transcribed Image Text:The condensed, adjusted trial balance of the David and Richard Partnership as at December 31, 2024, appears below: DAVID AND RICHARD PARTNERSHIP Adjusted Trial Balance December 31, 2024 Current assets Equipment Accounts payable Long-term debt. David, capital David, drawings Richard, capital Richard, drawings Service revenue Operating expenses Debit $31,000 89,000 276,000 251,000 74,000 $721,000 Credit $13,000 50,000 32,000 24,000 602,000 $721,000 The partnership agreement stipulates that a division of partnership profit or loss is to be made as follows:
Question 2 of 29 <> The partnership agreement stipulates that a division of partnership profit or loss is to be made as follows: 1 2 (a) A salary allowance of $319,000 to David and $259,000 to Richard. The remainder is to be divided equally. Prepare a schedule that shows the division of profit to each partner. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg (45 DAVID AND RICHARD PARTNERSHIP Division of Profit Profit Salary allowance Deficiency remaining for allocation. Fixed ratio Question 2 of 29 Profit Salary allowance Deficiency remaining for allocation Fixed ratio Deficiency remaining for allocation Division of profit Save for Later $ David Richard DAVID AND RICHARD PARTNERSHIP Division of Profit David Richard (b) The parts of this question must be completed in order. This part will be available when you complete the part above. Total Total Attempts: 0
Transcribed Image Text:Question 2 of 29 <> The partnership agreement stipulates that a division of partnership profit or loss is to be made as follows: 1 2 (a) A salary allowance of $319,000 to David and $259,000 to Richard. The remainder is to be divided equally. Prepare a schedule that shows the division of profit to each partner. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg (45 DAVID AND RICHARD PARTNERSHIP Division of Profit Profit Salary allowance Deficiency remaining for allocation. Fixed ratio Question 2 of 29 Profit Salary allowance Deficiency remaining for allocation Fixed ratio Deficiency remaining for allocation Division of profit Save for Later $ David Richard DAVID AND RICHARD PARTNERSHIP Division of Profit David Richard (b) The parts of this question must be completed in order. This part will be available when you complete the part above. Total Total Attempts: 0
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