Question
Veda Storey and Gordon Rogers have a partnership agreement with the following provisions for sharing profit or loss: 1. A salary allowance of $ 30,900
Veda Storey and Gordon Rogers have a partnership agreement with the following provisions for sharing profit or loss:
1. A salary allowance of $ 30,900 to Storey and $ 39,600 to Rogers 2. An interest allowance of 5% on capital balances at the beginning of the year 3. The remainder to be divided between Storey and Rogers on a 2:3 basis
The capital balances on January 1, 2021, for Storey and Rogers were $ 79,000 and $ 103,000, respectively. For the year ended December 31, 2021, the Ivanhoe Partnership had sales of $ 344,000; cost of goods sold of $ 247,000; operating expenses of $ 128,000; V. Storey drawings of $ 23,200; and G. Rogers drawings of $ 31,200.
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