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.

---

Definitions:

Toy Manufacturer

A business involved in the design, production, and marketing of toys for children and sometimes adults.

Trucking Company

A business entity that specializes in transporting goods across distances using trucks.

Miles on a Gallon

A measure of fuel efficiency in vehicles, indicating how many miles a vehicle can travel per gallon of fuel.

Miles Per Hour

A measurement unit that indicates the number of miles covered in one hour.