Question

The net income earned by the Cooper, Cross, and 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?

Answer 1

@TorilovesVampires

Answer 2

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 $6,000; credit Income Summary $18,000

D. Net income cannot be allocated

Answer 3

i picked D

Answer 4

it says no agreement was made for the division of the income meaning they dont know who gets what

Answer 5

rite?

Answer 6

I was thinking a

Answer 7

i did too but idk

Answer 8

try A then

Answer 9

ok