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

---

Definitions:

Social Behavior

Actions among individuals, within groups or societies, that are influenced by and affect others, including cooperation, competition, and aggression.

Linkage Studies

Genetic research methods that aim to find the location of specific genes by studying traits or diseases within families.

Rare Disorders

Rare disorders are diseases or conditions that affect a small percentage of the population, often making them difficult to diagnose and treat.

Genes

Units of heredity made up of DNA that are responsible for the genetic traits passed from parents to offspring.