Question

The net income earned by the Cooper,Cross,& Crane partnership is $18,000. Their respective average capital balances are $20,000, $20,000, and $40,000. What is the closing entry to allocate the net income if no agreement was made for division of income?
A. Debit Income Summary $18,000; credit Cooper’s Capital $6,000; credit Cross’s Capital $6,000; credit Crane’s Capital $6,000
B. Debit Income Summary $18,000; credit Cooper’s Capital $4,500; credit Cross’s Capital $4,500; credit Crane’s Capital $9,000
C. Debit Cooper’s Capital $6,000; debit Cross’s Capital $6,000; debit Crane’s Capital $6