The Net Income Earned by the Brian, Bill, and Bob

question 126

Multiple Choice

The net income earned by the Brian, Bill, and Bob partnership is $24,000. Their respective average capital balances are $28,000, $28,000, and $56,000. What is the closing entry to allocate the net income if no agreement was made for division of income?

• A) Debit Income Summary $24,000; credit Brian, Capital $8,000; credit Bill, Capital $8,000; credit Bob, Capital $8,000
• B) Debit Income Summary $24,000; credit Brian, Capital $6,000; credit Bill, Capital $6,000; credit Bob, Capital $12,000
• C) Debit Brian, Capital $8,000; debit Bill, Capital $8,000; debit Bob, Capital $8,000; credit Income Summary $24,000
• D) Not enough information given to allocate

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Definitions:

Sarcolemma

The cell membrane surrounding a muscle fiber, crucial in muscle contraction and conduction of nerve impulses.

Labeled Structure

A term indicating a diagram or image where specific parts have been marked with labels to identify them.

Acetylcholine

A neurotransmitter in both the central and peripheral nervous systems that is involved in muscle contraction, memory formation, and various other functions.

Axon Terminal

The end of an axon, which makes synaptic connections with another nerve cell or with a muscle or gland cell, allowing for the transmission of electric nerve impulses.