The condensed, adjusted trial balance of the Gary and James Partnership as at December 31, 2024, appears below: Current assets Equipment Accounts payable Long-term debt GARY AND JAMES PARTNERSHIP Adjusted Trial Balance December 31, 2024 Gary, capital Gary, drawings James, capital James, drawings Service revenue Operating expenses 1 2 Debit $50,000 117,500 295,000 270,000 93,000 $825,500 Credit $32,000 69,000 51,000 43,000 630,500 The partnership agreement stipulates that a division of partnership profit or loss is to be made as follows: Asalary allowance of $347,500 to Gary and $287,500 to James. The remainder is to be divided equally. $825,500

The condensed, adjusted trial balance of the Gary and James Partnership as at December 31, 2024, appears below: Current assets Equipment Accounts payable Long-term debt GARY AND JAMES PARTNERSHIP Adjusted Trial Balance December 31, 2024 Gary, capital Gary, drawings James, capital James, drawings Service revenue Operating expenses 1 2 Debit $50,000 117,500 295,000 270,000 93,000 $825,500 Credit $32,000 69,000 51,000 43,000 630,500 The partnership agreement stipulates that a division of partnership profit or loss is to be made as follows: Asalary allowance of $347,500 to Gary and $287,500 to James. The remainder is to be divided equally. $825,500

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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Question

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 e.g. (45))
Profit
Salary allowance
Deficiency remaining for allocation
Fixed ratio
Deficiency remaining for allocation
Division of profit
$
GARY AND JAMES PARTNERSHIP
Division of Profit
Gary
$
$
James
Toti

The condensed, adjusted trial balance of the Gary and James Partnership as at December 31, 2024, appears below:
Current assets
Equipment
Accounts payable
Long-term debt
GARY AND JAMES PARTNERSHIP
Adjusted Trial Balance
December 31, 2024
Gary, capital
Gary, drawings
James, capital
James, drawings
Service revenue
Operating expenses
1.
2.
Debit
$50,000
117,500
295,000
270,000
93,000
$825,500
Credit
$32,000
69,000
51,000
43,000
630,500
The partnership agreement stipulates that a division of partnership profit or loss is to be made as follows:
A salary allowance of $347,500 to Gary and $287,500 to James.
The remainder is to be divided equally.
$825,500

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