Gary, Peter, and Chris Are Partners

question 59

Multiple Choice

Gary, Peter, and Chris are partners. Their capital balances are, $25,000; $40,000; and $31,000, 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)Cash will be debited for $25,000.
• B)Peter, Capital will be debited for $1,714.
• C)Chris, Capital will be credited for $1,714.
• D)Gary, Capital will be debited for $25,000.

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Definitions:

Fenestrations

Small openings or pores, often found in the endothelial cells of capillaries, that allow for the exchange of substances between blood vessels and surrounding tissues.

Filtration Slits

Narrow gaps between the podocytes in the glomerulus of the kidney through which filtration of blood plasma occurs.

Podocytes

Highly specialized cells in the kidney that wrap around capillaries of the glomerulus, involved in filtration of blood to form urine.

Renal Corpuscles

The initial filtering component of a nephron in the kidney, consisting of a glomerulus and Bowman's capsule.