The Condensed, Adjusted Trial Balance of the Kirby and Simon

question 116

Essay

The condensed, adjusted trial balance of the Kirby and Simon Partnership as at December 31, 2013, appears below: The partnership agreement stipulates that a division of partnership profit or loss is to be made as follows:
1. A salary allowance of $310,000 to Kirby and $250,000 to Simon.
2. The remainder is to be divided equally.
Instructions
a. Prepare a schedule which shows the division of profit to each partner.
b. Prepare the closing entries for the division of profit and for the drawings accounts at December 31, 2013.

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Definitions:

Inventory Turnover

A ratio that measures how many times a company's inventory is sold and replaced over a specified period, indicating the efficiency of inventory management.

Average Inventory

A calculation to determine the median value of inventory within a given period, used for analyzing inventory management efficiency and cost of sales.

Dividend Yield Ratio

A financial ratio that indicates how much a company pays out in dividends each year relative to its stock price.

Annual Cash Dividends

The total amount of cash payments made to shareholders in a year as a distribution of corporate profits.