Solved

Gary,Peter and Chris Are Partners

Question 79

Multiple Choice

Gary,Peter and Chris are partners.Their capital balances are,$25,000;$39,000;and $33,000,respectively.As per the partnership agreement,Gary gets a profit share of 2/9;Peter has 4/9;and Chris has 3/9.Gary withdraws from the partnership by receiving $25,000.What will be the impact of this transaction on the journal entries?


A) Peter,capital will be debited for $2286.
B) Cash will be debited for $25,000.
C) Gary,capital will be debited for $25,000.
D) Chris,capital will be credited for $2286.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents